OH NO! It’s that time of the year again!

We all agree that traditional appraisals no longer work for many organisations, but we all agree that we NEED performance reviews!

Around 2012/13 some of the biggest Companies decided that it was high time to move away from traditional appraisals and performance ratings in favour of a variety of different processes. Newborn or fast growing companies are now looking back at what has happened so far to the traditional process to decide for the best in class solution to run reviews, trying to follow the new rule of real time & continuous feedback.

What does the future of Performance looks like? Well, from a Centralised and High-Control Model we are gradually moving to a Low-Control Process where the Employees want to take initiative and own their Performance… but we are still not there yet.

Early Innovators and Good Lessons to learn from!

#Adobe – They retired performance reviews 6 years ago. They have no formal rating or ranking system. They expect managers and employees to undertake a continuous process of feedback and improvement known as ‘Check-In’: a two-way, ongoing dialogue between managers and employees. They are open sourcing all their Check-in materials to show leaders and HR professionals a different approach.

“It may not be the perfect process for every company and there may be a better way, but we are strong believers that we innovate better together. Take our playbook, build on it and share it with us!”

#Google – They abolished its purely numerical performance rating system in 2014. This has been replaced by a peer review system, which is all geared around objectives and key results or (OKRs). Carried out semi-annually, peer reviewers are asked to state one thing the employee under performance should do more of and one thing that they could do in a different way. If you want to learn more: https://rework.withgoogle.com/

re:Work is an effort by Google and others to help share and push forward the practice and research of data-driven HR. Work can be designed to actually make people happier, healthier, and more productive. This is possible when organisations put their employees first, trust and treat them like owners, and use data to drive decisions about their people.

#Netflix – They have yearly 360 reviews, where everyone in the company can provide feedback to anyone else. Reviews are ultra-simple with just one text box where people can write anything they want. While there are no metrics or guidelines, most people use a start/stop/continue format (start doing X, stop doing Y, continue doing Z). Any review submitted will have the reviewer’s name attached to it – nothing is anonymised. Reviews are also automatically shared with the manager of the person being reviewed, as well as their HR partner. Netflix Culture of Freedom and Responsibility is reflected perfectly in this transparent and very simple process.

#Cisco – They piloted and implemented a collaboration tool called Team Space, which is indicative of its focus on the performance of teams and not individuals, as just about everything gets done through teamwork. Team Space enforces a weekly check-in, which is a short message that takes about five minutes to write. Here are some of the questions in the check-in:

  • “What did you love doing last week?”
  • “What are your priorities for this week?”
  • “What do you need from me this week?”

With the check-in as a starting point, the team leaders are strongly encouraged to have a weekly or at least a bi-weekly conversation with those on their team. These conversations are in addition to any team meetings that may occur. Philosophy behind the process: excellence happens in high performing team!

#Deloitte – They focused on simplifying its performance management process. All managers answer four future-focused statements about every team member, at the end of every project (or once per quarter for long-term projects). These four statements, together known as a ‘Performance Snapshot’, are as follows:

1) Given what I know of this person’s performance, and if it were my money, I would award this person the highest possible compensation increase and bonus. This features a five-point scale from “strongly agree” to “strongly disagree” and measures overall performance and a person’s unique value to the organisation.

2) Given what I know of this person’s performance, I would always want him or her on my team.This uses the same five-point scale and measures ones’ ability to work well with others.

3) This person is at risk for low performance. Using a yes/no responses, this identifies problems that might harm the customer or the team.

4) This person is ready for promotion today. This asks for a yes/no response, measuring potential.

Shifting away from annual performance evaluations toward a process of continuous coaching and improvement requires a new role for managers. Managers become coaches, rather than evaluators.

OH NO! It’s that time of the year again!

If you are designing your tool or looking for the best solution (company size small/medium) this is a great article for you in oder to get ideas and inspiration https://fitsmallbusiness.com/best-performance-management-system/
According to company size there are best Matches. Remember that a Performance management software can be implemented either as a standalone solution or as part of an integrated HR management suite. This is an helpful overviewhttps://www.g2crowd.com/categories/performance-management
Special Mention to #Lattice as Best Performance Management Tool for Non-HR Users. 🏆 Non-HR is the new-cool. Using an easy and collaborative tool to manage Performance Management is the way to move away, once for all, from tradition. Extremely user-friendly, visually appealing to the eye and non-disruptive in day-to-day work.

Which is today the best Timeframe for Reviews and Check-IN?

Weekly is far too frequent annually is far too long. If you are going to create a structure to support someone in growing and developing over time, you need something in between. This is the Typical Approach that works!

Implementing the right process for your company. Here is a list of helpful questions to start from:

  • Do you need a rating system? For pay increases?
  • Is there another way of assessing performance?
  • Do you have the resources to effectively train managers how to rate without bias?
  • Alternatively, do you have the resources to implement a quality check of their ratings?
  • What is being rated? What are the most important factors for your organisation to measure? Objectives? Behaviours? Questions?
  • What ROI could you link to these measure to demonstrate their importance and effectiveness?
  • How often should objective setting, feedback and/or ratings take place? And by whom? Managers only? Peers? Project teams?
  • How capable are leaders at setting clear performance objectives?
  • If you are not rating, what type of development are you giving?