As the end of the year fast approaches many organisations are abuzz with a flurry of activity as managers conduct performance reviews with each of their people. Now I acknowledge that many people dispute the value of a performance review, but as argued in a previous post, if performance management is done well by a manager across a whole cycle and if it is linked to business strategy, then a performance review should be a valuable tool for the manager, team member and organisation alike (see http://tinyurl.com/3el7nya).

In the midst of all this work a golden opportunity is often lost by organisations - the chance to turn performance review data into strategic information.

For the purposes of this discussion let's assume that an organisation's performance management process uses a combination of performance objectives and competencies against which a person's performance is assessed and that some type of overall performance rating is determined (numeric or otherwise).