Performance Reviews

She has worked and worked to get this job done right and now it is meeting time. Oh, how she wishes she did not have to do this—her shoulders are tight and she is not looking forward to the meeting.

While this article is focused on managers' tips to preparing and communicating performance reviews effectively, it also can help you to manage your boss's review of your performance.

Organizations do performance reviews for a wide range of reasons. Some focus on development and performance improvement. Many of these organizations have tried some form of '360' reviews with input from co-workers, internal and external customers, project managers, and others who see an employee's work results. Most organizations, however, focus on documenting past performance for use in compensation, promotion, and retention decision-making. These review formats may specifically include input from others, or from the employee, or they may not. Often, annual reviews are designed to do conflicting jobs for the organization: most commonly documenting actual performance in various areas while also used directly to determine a person's pay raise. It is the combination of uses and the fact that many managers are not good at setting performance standards and providing routine feedback that makes the annual review process so difficult for so many.

How can you cope more effectively with your organization's process?

First, learn to plan and manage performance all year. This is not a one-time issue. Good managers provide routine performance feedback on an ongoing basis. Annual performance reviews have NO positive effect on improving or maintaining good performance. Regular timely feedback does maintain good performance and improve poor or adequate performance.

It is useful to keep notes or copies of significant achievements throughout the review period. These can include compliments from customers, employee's own weekly/monthly status reports, notes you have taken as events occurred, 'atta-girls' you have sent or received. You can keep these in whatever format works for you. Of course, keep records of performance issues and corrective actions.

If there are performance problems, address and resolve them as they occur; don't expect the annual review to be effective in bringing up and resolving such issues.

Second, learn what your organization's goals are for its review process. Learn your boss's expectations too. Understanding the process and planning for it will make your role easier.

Preparing the Actual Review

Now comes the annual review. To start your assessment, bring out and review your records. Remember, NOTHING in the review should be a surprise to the employee! Ask yourself these questions as a guide to forming your own assessment:

1. What are the position responsibilities, in order of importance?
2. How have I rated the volume and quality of work?
3. How would I compare the employee's performance with others who have similar responsibilities?
4. How would I describe work attitude and motivation?
5. How well did the person work with others?
6. What strengths and successes did the person demonstrate?
7. How well did the person accept additional or changed responsibilities?
8. What part, if any, did the person have in the success of any really significant task?
9. What part, if any, did the person have in the failure of any really significant task? (Be sure before you include this.)
10. What could the person have done to produce even better results? (Critical to identify better performance or training needs.)
11. What, if anything, did the person contribute to the company beyond the immediate position responsibilities?

As you prepare your assessment, you also should consider:

• Get a self-appraisal from the person. Remind the individual in advance so that s/he can provide you with her/his comments and achievements.
• Take special care to ensure your evaluation is based on the entire review period and not just recent performance. "Recency" is a very common mistake and is one reason that keeping a file of items during the review period helps to improve your appraisal.
• Review the employee's input with your own notes and records to create your assessment. Pay particular attention to any areas of miscommunication or misunderstanding between your assessment and the employee's input.
• Use words carefully. Many performance reviews are filled with euphemisms by managers who wish to avoid dealing with problem behaviors. You have probably seen some of the jokes circulating on the Internet about these statements: examples include: 'Outstanding in his field', 'creative approach to basic tasks', 'effective in routine tasks'. I will leave the translations to you!

Why bother with all this? It is important to write clear and accurate performance reviews to retain good performers. Additionally, these documents ensure that future employment actions, including promotion, training, or termination of employment, are made correctly and can be defended to the person and in any legal action.

Once you have prepared your assessment, discuss it with your manager. Answering your manager's questions will help you clarify any unclear areas and prepare you to meet with the individual.

Then set up an appointment with the person and do the review.

Effectively Communicating the Review

1. Plan the schedule with the person in advance and keep the appointment.
2. Choose the right place—you need privacy to discuss this. Whenever possible, this should be done in person. If not, use a combination of telephone and email or fax so that both of you can talk and look at the document simultaneously. This is much more effective than just shooting off the review for the person to look at.
3. Choose the right time. Mondays and Fridays are often rushed as are days right before a trip or holiday. Also, if the person has questions or strong feelings about the review, you need to be able to address these promptly, so that good feelings are retained and any bad ones do not fester.
4. Don't be hurried. Give yourself time to have a conversation. However, do keep the meeting relatively brief. Schedule another time for follow-up if needed. Too many points made all at once create confusion.
5. Set your priorities in advance. Cover the items you need to discuss in order of importance. Begin with areas of achievements and praise as well as those on which both of your assessments agree. Remember, you want to reinforce the positive behaviors and recognize achievements.
6. Your own attitude is most important—it sets the tone for the discussion. Be positive, objective, and calm.
7. Pay attention to your words, your tone, and your demeanor. Make your points clearly. Poor communication can arouse resentment or create problems over even the most positive comments.
8. Use your record of behavior and 'critical incidents'. Discuss these specifics to reinforce positive behaviors and to address developmental needs.
9. Nothing in a performance review should be a surprise to the individual—whether bad or good! Recognize the individual's achievements. Reinforce the actions and attitudes you want the person to continue. Where there have been problems, do not downplay them. But keep the references brief if they have been solved or, if progress is evident, say so.
10. Give the person a chance to talk and to reply to your comments. Get his or her involvement and interest.
11. Listen to what the person has to say and to the information behind the words. Respond to expressed needs and feelings. Be sure the employee heard all the positives. If you believe you have made a mistake or need to evaluate new information which may change the review, say so and explain what you will do.
12. If the employee denies a problem or makes excuses, listen to him or her, and be understanding of his or her concerns, even if you do not agree. Ask for suggestions on how to address or resolve your differences.
13. Throughout the discussion, focus on results of the person's work—not on the personal aspects of attitude, motives or ideas.
14. End the interview on a positive note. Set a date for follow-up if needed and for a meeting to plan the future objectives, where appropriate.

Finally, work with your Human Resources function to understand and use your performance review system effectively. If you do them on time and within the basic guidelines, the HR folks will be thrilled—good currency when you need their help in the future.

If you do not like the system, define your concerns and talk about these. If you still do not see it as effective, seek positive ways to change it. Unfortunately, many performance review systems are ineffective and waste time. Others are used badly or have been corrupted over time so that everyone is rated in the highest categories. But you need to have a positive suggestion or option to improve the process if you want to get support for change within your organization.

One of the most effective systems I have worked with was a quarterly one. Each person had a one-page review with three sections—one corporate goal, one work unit goal, and one personal development goal. These were set up at the beginning of every quarter and evaluated at the end. The process averaged about 15 minutes at the beginning and 30 at the end per person. Much was done by email. Employees valued it highly since they had input and it helped them focus.

Another effective system eliminated all forms. Each manager was tasked to write a letter every six months praising the employee for all positive actions. Any improvement action was done separately as the issue arose. Managers were encouraged to do these letters on time and effectively by making employee feedback on the letters' timeliness and accuracy a part of the manager's incentive plan.

Other effective systems included work goals planning with company standards evaluations focused on critical issues.

The most effective review system—or the least effective one—can still be used to good purpose by a manager who is committed to effectively using whatever tool is available.

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