Performance reviews can be daunting for both the reviewer and reviewee. But they need not be. Done well, the annual review can be a positive, constructive and inspiring experience for all.
In this post, I’ll delve into the intricacies of performance reviews and how you, as manager, can make the most of them.
- Address under performance as it happens
This may be the best piece of advice I was given as an emerging leader of others. I don’t need to point out the impacts of allowing simmering resentments and frustrations to bottle up over several months. Instead, create a culture of continuous improvement by promptly addressing underperformance as it happens and before it has time to blow up into something much bigger than it needs to be.
- Know the purpose of the review
Reviews, appraisals – call them what you will – serve multiple purposes. First of all, they provide a formal platform for managers to evaluate employee performance against their KPIs, recognise achievements and identify areas for development. Secondly, they can provide a safe space in which you can provide constructive feedback to your employee and they to you. This is, after all, a two-way process. Reviews are also opportunity to readjust and come back on course, ensuring the employee is clearly aligned with the organisation’s goals and objectives.
- Start at the beginning
It’s difficult to assess performance without some kind of benchmark. This is why it’s so important to have clear and measurable KPIs agreed upon right at the outset. How many KPIs your team member has will obviously vary, but I suggest there is a sweet spot somewhere between four and 10.
- Prepare
As with so many things, preparation is key for a successful review. If you are a manager, encourage your team member to do likewise by reflecting on their achievements and challenges, noting areas where they feel they can demonstrate growth and areas in which they would like support or training. For your own preparation, take the time to review the employee’s KPIs and go over past reviews. Consider how they have performed in relation to relevant metrics.
I also like to set an agenda to share with the team member in question. This might include things such as:
- Current performance against KPIs
- Achievements
- Future aspirations
- Goals for the coming year
- Priority goals
- Action steps (note things such as professional development or training that you’ve each agreed upon, etc.)
- Focus on alignment
In my experience, the most positive reviews are those that are forward-focused and able to keep the conversation on strengths and opportunities to move into closer alignment with organisational values, strategies and so on. The best managers are those who can focus more on future improvement and less on past mistakes.
- Be open to feedback of your own
The review is, naturally, focused on the reviewee. But that’s not to say there can’t be space for your employee to provide their own feedback to you as manager. In fact, you might even invite this kind of feedback with questions like:
- “How can I support you better?”
- “What do you need from me in order to move forward?”
- “Is there anything I’m not currently doing that you feel I should be?”
- “Any suggestions as to how I could improve as your manager?”
- “How do you prefer to be managed/supported?”
- “What are the best ways for me to communicate with you?”
- Set clear goals
Good performance reviews often culminate in setting new goals for the coming year. These should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound) and clearly aligned with the employee’s KPIs and the organisation’s strategy. Importantly, the new goals will also reflect the employee’s personal aspirations and interests.
- Follow up
A good manager will always follow up in the days after the review to ensure that everything was clear and that the employee is feeling positive about the future. And of course, the contact doesn’t stop there. Regular check-ins throughout the year will ensure your team member feels supported and connected. Maintaining that connection will also ensure you can address issues as they arrive and adjust goals where needed.
Performance reviews are more than just a formality; they’re an opportunity for personal and professional growth. By approaching them with the right mindset and preparation, you can turn them into a valuable, forward-focused learning experience. Embrace feedback, set meaningful goals, and continue striving for excellence in your role. Remember, a performance review is not just a reflection of past accomplishments but a springboard for future success. Good luck!
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Email karen@o2advisory.com.au to find out more about bespoke programs for emerging and mid-tier managers.
