There is that time of the year that can be daunting for some managers: the performance review cycle. Usually, it’s a process that happens once or twice a year. But more important than how often is to be prepared for it when it happens.

The performance review cycle is a sensitive period where people expect a salary raise or a promotion. It’s not a wrong way to see it this way, but it is much more than that. It is an opportunity to get feedback and understand where people are on their journey. During this process, there are two outcomes: either your direct report meets/exceeds expectations or the other way around when they aren’t performing at the expected level and need to go through a PIP (Performance Improvement Plan), which I cover in another article. Either way, you must be prepared to give quality feedback in both scenarios.

It’s all about preparation

The performance review cycle must be smooth and without surpises. Nothing should be new if you are doing active management by coaching, giving regular feedback, having 1:1s and working on career progression with your direct reports.

Here is a list of things that will help you to prepare for the performance review cycle:

• Have a conversation with your direct reports explaining that they are accountable for their performance and growth. Your role as a manager is to coach them, give constructive feedback and find the right opportunities to help them achieve their goals successfully.
• Understand where your direct report is on the journey and their next career goal. Usually, companies have a career ladder framework that explains the expectations of the different roles, which helps define a plan to get the promotion.
• Create a document and share it with your direct reports to keep track of their achievements. It is essential to be clear that they own the document and are responsible for updating it. This document will make it easier for everyone to remember their achievements throughout the year. A helpful tip is to create a Slack bot to remind everyone in the team to spend time filling out this document.
• Ask your direct reports to provide detailed examples and related impact. For example, instead of writing, “I delivered the splash screen feature”, ask them to be specific and include the outcome like, “I was responsible for designing, testing and delivering the splash screen feature, which contributed to increasing user conversion by 2%. During this project, I have collaborated with the design team to ensure we delivered the best UX experience to our customers.” Providing specific examples and explaining the impact will help support their performance.
• Collect peer feedback over time. If they work closely with others, asking for feedback will give additional information and a different perspective. It also removes bias since you have input from different people.
• Request for self-review performance. It helps you understand if their perspective is aligned with the feedback you have given. If that’s not the case, then it means something went wrong in the process, but at least it gives you time to prepare for the conversation. Writing the self-review also allows them to build their case to justify why they deserve compensation.
• Book a monthly meeting where you write notes about your direct report’s performance. The idea is to create a log of their highlights and areas of improvement and share them during the 1:1 sessions.

Writing Performance Reviews

Assuming you have done all the preparation, writing the performance review should be straightforward since you have collected all the information beforehand.

When it comes to writing, I like structuring the performance review into four different sections:

• Summary - This section contains the overall performance outline and must justify the outcome (meeting or non-meeting expectations).
• Examples - A bullet list with all their achievements that support their performance. The examples must be specific and include the impact.
• Supporting peer feedback - A list of quotes from their peers about their performance. Including this section is an excellent way to avoid bias and get additional feedback to support your review. It’s crucial to anonymise the feedback for privacy reasons.
• Areas of improvement - Highlight the areas they should focus on to grow to reach the next level.

Here is an example of a performance review template.

Disagreements

As mentioned before, there shouldn’t be surprises during the performance review cycle if you practice active management. However, that’s not always the case and for these scenarios, it’s crucial to be transparent and follow a radical candor approach (care personally and challenge directly).

• Share your performance review in advance with your direct report to allow them to read your perspective and have complete visibility.
• Set up a meeting one week after sharing the performance review cycle to give them time to digest and self-reflect on their performance. Most of the time, they only remember their successes and tend to forget their mistakes.
• During the meeting, start by highlighting their strengths and the positive impact on the team. Then, explain their areas of improvement by providing specific examples and creating goals to address them. Remember, this shouldn’t be the first time they hear about this, but some people need a reminder.
• Follow up regularly on their progress and keep practising active management.

In conclusion, the performance review cycle should not be a daunting time of the year but an opportunity for meaningful growth and development. Managers must approach these reviews not just as a procedural necessity but as an opportunity for effective team management and individual career progression. The key to a successful performance review lies in its foundation: regular coaching, active management, and consistent feedback throughout the year. This approach streamlines the review process and fosters a culture of transparency, trust, and mutual respect within your team. It’s about nurturing a work environment where employees feel valued, understood, and motivated to reach their full potential.