Innovative Approaches to Performance Reviews

Managers often resist performance appraisals—not just because they’re uncomfortable, but because deep down, they feel uneasy about passing judgment on another person’s worth. This insight, drawn from a 1972 Harvard Business Review article, remains just as relevant today. Douglas McGregor argued that traditional performance evaluations put too much power in the hands of managers while treating employees as passive subjects rather than active participants in their own growth. Instead, he advocated for a shift: let employees set their own performance goals, reflect on their progress, and work collaboratively with their manager to course-correct. This approach was groundbreaking then, and it still challenges the way many organizations operate. Despite decades of leadership development, many companies continue to rely on top-down, judgment-heavy appraisals rather than empowering employees to take ownership of their growth. The world looks different today—more remote work, shifting employee expectations, and a stronger focus on autonomy—but the core truth remains: people perform better when they have agency over their own development. Three takeaways for leaders today: (1) Turn Appraisals into Coaching Conversations Instead of judging past performance, help employees define clear, meaningful goals and guide them forward. (2) Shift from Evaluation to Self-Reflection Encourage employees to assess their own progress first. They often hold themselves to a higher standard than managers do. (3) Recognize That People Aren’t Products Performance reviews aren’t about "quality control." Employees aren’t widgets on an assembly line—they are individuals with evolving skills, aspirations, and challenges. McGregor’s ideas may have been ahead of their time, but they still hold a mirror up to how we manage talent today. If leaders want engaged, high-performing teams, they need to stop controlling and start empowering. How do you approach performance conversations in your organization? #performance #collaboration #coaching #teams #leadership #learning #growth #reflection #management #managers #conversations https://lnkd.in/e_tk9_DB

We've analyzed over 30,000 performance reviews at Confirm, and what we found is consistently alarming. 50% of companies' top performers AND toxic employees remain completely hidden from leadership. 64% of employees view these reviews as a partial or complete waste of time. These aren't just statistics to me. They're personal. BACKGROUND: I've spent 20 years watching talented people get overlooked while office politicians get promoted. I've seen hundreds of HOURS wasted on calibration meetings filled with bias and politics. I've watched companies lose top performers because they couldn't identify who was truly mission-critical. And I've felt the frustration of realizing traditional performance reviews reflect who you know, not your impact. THE PROBLEM: Traditional reviews are fundamentally broken in today's networked world of work: 1) They rely on single-manager assessment (a single point of failure). 2) They reward visibility over actual impact. 3) They're biased toward people who "play the game" well. 4) They fail to identify your true high performers (who often leave quietly). 5) They're administratively exhausting for everyone involved. HOW ONA CHANGES EVERYTHING: Unlike traditional methods, Organizational Network Analysis (ONA) leverages your entire organization instead of just cherry-picked peers. By asking research-validated questions like "Who do you go to for help?" and "Who's making outstanding impact?", we don’t just measure the “What” of work, but also the “How” that managers often don’t see directly. It's like putting on infrared goggles in a dark room. Suddenly you can see what was always there but invisible: your quiet innovators, your connectors, your true top performers. THE IMPACT: One customer, Thoropass, aimed to avoid losing key talent during the Great Resignation. Using ONA, they identified their true mission-critical employees (many who weren't on leadership's radar!)—and retained 100% of them over 12 months. Another, Canada Goose, discovered 2.5X more top performers than their traditional process had surfaced. THE REALITY: Performance reviews weren't designed for today's hybrid, collaborative, cross-functional world. The most impactful employees often work behind the scenes, connecting teams and solving problems others don't even see. ONA finally gives these people the recognition they deserve while giving leaders the confidence to make fair, data-driven talent decisions. We've built an entire system to make this easy. Because data-driven recognition of true impact isn't some far-off ideal—it's rapidly becoming the new normal. The era of highly subjective, opinion-driven talent decisions needs to end.

It's that time again. The dreaded annual performance review. Annual performance reviews are undeniably ineffective. (Yes, I’m an “HR person” putting a nail in the coffin of an activity that’s been our swan-song for eons….)    Survey after notable survey have reported that nearly every manager AND employee questioned believe that annual performance reviews weren’t effective or useful.    My friends, the traditional process is flawed.    Why?    First, the traditional review process focuses on the past rather than the future. This backward-looking conversation has shown to demotivate employees. (And, who really remembers what they did 11 months ago!? Raise your hand if you’ve reviewed your calendar from the past 12-months to remember what you did and accomplished? 🙋♀️)    So, how do you hold staff accountable while avoiding a cumbersome (and demoralizing) conversation?    Here’s the deal -    Employees prefer consistent, timely feedback to address roadblocks, receive recognition, and build a foundation of trust with their leaders. That’s why a less formal, more consistent approach to performance management benefits employee, team, and business success.    So, what should the process be?     1. 𝗠𝗼𝗻𝘁𝗵𝗹𝘆 𝗢𝗻𝗲-𝗼𝗻-𝗼𝗻𝗲𝘀  These informal meetings serve as an opportunity to recognize employees for their hard work, assess roadblocks, and coach performance. Regular one-on-ones help managers evaluate results as they come, not months later. That way, you can correct ineffective processes before they become a habit.    2. 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗰𝗵𝗲𝗰𝗸-𝗶𝗻𝘀  Quarterly checks are a great supplement to your one-on-one opportunities. These can be more formal.    3. 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀, 𝘁𝘄𝗼-𝘄𝗮𝘆 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸  This enables both employees and managers to ask for feedback. Not only does this make employees feel like their opinions matter, but it gives managers the insight they need to improve the employee experience and grow as a leader. In addition, your employees will be more likely to accept feedback without hesitation when it goes both ways.    4. 𝗖𝗮𝗿𝗲𝗲𝗿 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻𝘀  Career development conversations help employees and managers align on the future. These conversations allow managers to recognize employee talent. When you show an employee that they are valued, you’ll be able to bring out their full potential.    The war for talent is real. It’s critical for leaders to establish a routine where expectations are clear, direct feedback is delivered real-time, and career development is actively supported.    How do you review your employees? And as an employee, how would you like to be reviewed?

I stopped performing annual reviews. 99% of the time they don’t increase actual performance.  Give me 2 minutes. I'll show you what I did instead: 👇 𝗦𝗵𝗶𝗳𝘁 𝗬𝗼𝘂𝗿 𝗠𝗶𝗻𝗱𝘀𝗲𝘁 • Break free from traditional annual reviews. • Be a year-round coach, not a once-a-year judge. • Continuous feedback, like a sports coach, is key. 𝗔𝗹𝗶𝗴𝗻 𝗚𝗼𝗮𝗹𝘀 • Avoid misalignment with clear, measurable goals. • Limit to 3 major goals. • Employees set personal goals aligning with these. • Focus: 80% on these goals, 20% on everything else. 𝗠𝗮𝘅𝗶𝗺𝗶𝘇𝗲 𝟭𝘅𝟭 𝗠𝗲𝗲𝘁𝗶𝗻𝗴𝘀 • Essential for ongoing feedback. • Ideal timing: 60 minutes every two weeks. • Discuss progress on top 3 goals. • Address blockers & celebrate successes. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗖𝗵𝗲𝗰𝗸-𝗜𝗻𝘀 • Extend a regular 1x1 to 90 minutes quarterly. • Explore the employee’s broader career aspirations. • Discuss quarterly performance. • Checkin on personal development (see next) 𝗘𝗺𝗽𝗵𝗮𝘀𝗶𝘇𝗲 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 • Traditional reviews list too many improvement areas. • Focus on ONE key area for yearly improvement. • Agree on the area together. • Review progress in quarterly sessions.    👇 𝗕𝗼𝗻𝘂𝘀 𝗧𝗶𝗽𝘀 For 𝗘𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: 1. Make every 1x1 a coaching opportunity. 2. Consistently give feedback or praise. 3. Avoid canceling 1x1s – they're crucial. 4. Repeated mistakes may indicate a poor fit. 5. Link bonuses to both company and individual goals (50/50 split). Ditch the bureaucracy and transform performance management into a tool for real feedback and personal growth! 📈 _____ Enjoy this? Repost to your network and follow me Scot Chisholm for more! 📌  P.S. I'm writing about how to delegate like a pro this Friday to all my newsletter subscribers. Sign up here: scotchisholm.com