Performance Reviews
April 21st, 2010There was a resent article in the Wall Steet Journal that I have some experience with a wanted to comment on. The article is at
My thoughts on the article and performance reviews:
I have heard this many times over the years. I don’t agree with the premise – get rid of performance reviews.
I agree with -
“If you’re a boss, and your subordinate isn’t succeeding, something is broken here. Doing more of the same isn’t going to cut it. It’s now time for you to ask, “What do you need from me to deliver what we are both on the firing line to produce?” And just as important, it’s time for you to listen to the answer.
Asking and listening. Imagine that. It’s called a conversation, and it’s a rarity in workplaces today. Only by hearing what the other person thinks, and putting that person’s actions in the appropriate context, can you actually see what the person is saying and doing — and how together you can get where the company needs you to go.”
I agree that what should be happening are frequent conversations during the year that are focused on the numbers. There should never be a conversation once a year that surprises the employee that they are failing your expectations.
In my thinking the sole reason for performance reviews is because there are annual increases. So there must be a quantifiable and defensible measure to: 1. Reward and motivate your best employees (most of the time you have to pay talent to keep it). 2. Thank the less talented but productive ones and 3. Let the poor achievers know that they need to be looking elsewhere or figure out how to leverage what they have. (These are employees that you have hope for. They have the basic skills but need development. If not, you should have let them go or demoted them).
As to the model that says not everyone can be excellent and forces a bell curve distribution (relative performance by comparisons), I hate it the same way I hated teachers doing that with grades (grading on a curve). I have worked for companies that “graded on a curve.” In a small talented department it is deadly and is detrimental to the team to follow the business philosophy of “get rid of the bottom 10% each year to raise your standard of excellence.” Each year a scapegoat is found to sacrifice to the corporate gods.
I have trained many managers on how to do performance reviews and have seen the good, the bad and the ugly. They are not going away. We in management owe it to ourselves, our employees and company to understand the tool – its strengths and weakness, its limitations and its abuses.
As a side note – the analogy of not using rotten milk doesn’t work. Yes I do use rotten milk to bake with. Never pour out milk that has gone well. Put it in your pancake batter or any baking. Works well.
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