This is pretty much how I feel about traditional performance appraisal systems. Much like the common declaration of a newly hired HR leader who claims that the way to ‘fix’ things is by implementing a shiny new ERP system, the introduction or revamp of a ‘structured’ performance appraisal often follows in the wake of their arrival (and is most likely sprinkled with a solid dose of the ‘nine-box grid’ for good measure).
Some recent conversations with a couple of our clients have reminded me of the issue of performance reviews and how the old processes have been failing us for some time. They seldom drive anything more than an annual cycle of demotivation and add pressure on managers to write school-report-style reviews in an overworked team.
For the most part, the key issues are the burden of the process and the lack of humanity in the discussions that follow. Seldom a recipe for stellar results, in my humble opinion.
If you are lucky enough to be in a position within your organisation where you can influence the approach and suggest (and experiment with) a different way of doing it, then some of these ‘thought-prods’ may be helpful:
Team Reviews
Some organisations have adopted an approach where entire teams are reviewed against the organisational goals. This approach can drive collaboration and help teams understand what they are trying to achieve. It also creates space for the team to reflect on the past year’s performance and draw out lessons they can apply moving forward.
Motivation-Centered Approach
The big challenge with the approaches we are all used to is that they often remove the individual from the center of the performance process. By insisting on a rinse-and-repeat style of review, it quickly becomes a tick-box exercise, which only ever motivates those who receive resoundingly epic feedback.
A better approach would be to start by understanding the key motivators for the individual, and then reviewing progress and future potential from that perspective. Asking employees what drives them — recognition? career growth? creative freedom? financial incentives? work-life balance? — helps to provide a strong foundation for this approach.
Keep asking the question: Are we addressing what keeps you engaged?
Reverse Appraisals
Reverse appraisals flip the traditional performance review by allowing employees to provide structured feedback to their manager or leader. This is done by gathering insights from individuals on their manager’s effectiveness and identifying areas for improvement.
This approach enhances managerial accountability and self-awareness, empowers employees to voice their concerns, share suggestions, and ultimately builds a culture of continuous improvement. Managers, knowing they are going to be reverse appraised, spend more time individualising their approach and finding ways to provide a positive employee experience.
This could be tough, but effective in driving quality managerial behavior and reducing the ‘feedback vacuum,’ that arises as you move up the career ladder.
Continuous Feedback Loops
This is one that Lisa Hamill and I first landed on when we removed annual appraisals some years ago. The concept is that instead of fixating on an annual or semi-annual event, there is ongoing reflection on goals and performance, with the individual at the heart of the conversation. It had its drawbacks in some areas but as a start for shifting away from the annual appraisal it was a good move in a different direction.
Many organisations, such as Accenture, use this approach, which allows for course correction and realigning as the inevitable shifts in priorities and challenges take place.
Future Review
Many appraisal systems prioritise conversations around what has already happened, with a bit of future thinking tacked on at the end. The main issue with this is that while lessons learned are useful, the past has already happened, and fixating on it is not the most effective way of driving future potential.
A future review fast-forwards you to the end of the following year, focusing on the goals that need to be achieved, and then you take reflections from the previous year’s performance to identify how they will help you in the next period.
Take into consideration the things that haven’t gone so well: as a result of those experiences, what will you take into next year? This means that even areas where performance isn’t 100% the learning from the past year is taken into the next.
If You Can’t Change the Game
If, on the other hand, you are restricted within the realms of your corporate system, which dictates a nine-box grid approach or insists on you completing an appraisal form for all team members once or twice a year (leaving you resenting the additional administrative burden alongside your already busy day job), then some of these thoughts could still be beneficial.
There is still a way to be an extraordinary leader, even within processes and structures that feel inhibiting:
Transparent Communication
Be honest with your team without undermining the organisation. You can acknowledge some flaws in the process but emphasize your commitment to working within the system to achieve the best outcomes.
Reflect on the processes that are in place and consider how best to meet the individual needs of your unique team members within the parameters of the process you need to follow.
Adapt and Stay Solution-Oriented
Lead by example by demonstrating flexibility. The reality is that we are all constrained at times by the realities of our working environments, and finding a way to work within a system can be a valuable skill as a leader.
Focus on finding creative ways to work effectively. This shows your team how to overcome obstacles.
Foster Open Dialogue
Encourage your team to share ideas and feedback, even on processes you may not agree with. This creates a culture of innovation and trust, while helping everyone feel heard and valued.
This gathering of genuine, front-line feedback is also valuable to your organisation and shows effort on your part to understand how people feel about the processes.
Provide Feedback
At times, there is a tendency to feel powerless in the face of the ‘corporate approach,’ but as a manager or leader, you represent your teams. If processes are not working for them, it’s important to find a way to feed that back, even if you’re convinced you won’t be heard.
You have a responsibility to provide good quality feedback to your team as well as upwards to your own leaders. If you have been having open dialogue with team members and gathering insights and ideas, that feedback will be valuable and solution-oriented (and may help to give alternative ideas) for your organisation.
Model Professionalism
Professionalism doesn’t mean inauthenticity or ignoring an issue; it means considering the best way to navigate the realities of your working environment. Even if you disagree with certain approaches, be aware that your attitude sets the tone for your team. Demonstrating that you are able to navigate disagreements constructively and focus on what can be controlled and improved is crucial.
While you can probably tell that I believe the whole turbo traditional approach should be ditched, it isn’t always possible. When that is the case, it’s key to recognise where you do have control and influence — that is how you show up and take responsibility for the important role of a manager.
You have huge impact on the people who work for you, and how you show up for them, despite an old-school process is critical to their success.
