I have noticed a trend in recent years of articles being published which declare the death of the performance review or which deride them as a waste of time. In this latest post, I offer the counter view that the performance review is not the problem, but that it has had its reputation sullied by the following common contributors to ineffective performance reviews:
1. Performance appraisals rather than performance management cycles. A performance appraisal is a one-off event with little link to business strategy. A genuine performance review should be the final phase of a performance management cycle (annual or six monthly) which commences with setting performance objectives linked to business goals. This distinction is the critical factor which determines whether performance reviews are perceived as just another bureaucratic HR process or a valuable business tool.
2. A dearth of SMART objectives. Despite all the talk about and training in setting SMART objectives they are still all too rarely seen. This renders the performance evaluation too subjective and people lose trust in the fairness of the process. Setting SMART objectives requires a commitment of time and energy and a ruthless approach to making them SMARTer.