For some people, performance reviews are the one time when they tell their direct reports how their work is perceived. Sometimes these reviews are simply a perfunctory fulfillment of a corporate requirement or the necessary step required for a salary increase. Often the performance review, whether it be annual, quarterly, or some other frequency, is the only time that a boss might discuss the level of performance, suggestions for improvement, or career aspirations. On the other side of the table, the team member may walk into the review meeting with some fear, either of the unknown or of the possibility of criticism.

For a true leader, the performance review process can be quite different. The performance review is an opportunity to mentor or coach and an opportunity build relationship. Here are some thoughts on the performance review in an effective leadership model:

1. The performance review is a time for summarizing and consolidating an ongoing dialogue about performance, development, and aspirations. An effective leader has a habit of continually communicating with his or her direct reports. This continual process includes frequent 1:1 meetings to discuss work progress and performance, identify issues regarding organizational processes or resources, and relationship building through discussion of aspirations, satisfaction, and so forth. Additionally, an effective leader provides impromptu guidance and feedback, both positive and negative, whenever the occasion arises to directly view the work of the team member. This process of continual feedback need not be time consuming; a 1:1 meeting can typically be accomplished in 15-30 minutes every week or two and impromptu feedback can be done in 2-3 minutes while walking out of a meeting. With these habits in place, the team member knows exactly what to expect in a performance review as it is a summary and deeper dive into topics that have been discussed over time.
2. The performance review is a balance of past and future. The performance review is a wasted opportunity if it only looks at the past and the team member leaves the meeting without a clear view of what needs to or is likely to happen in the future. There needs to be agreement regarding the level of past performance, but leadership always has a forward focus. Therefore, the time needs to be split between the review of performance and a discussion of the future. This view of the future includes a discussion of the areas of emphasis for the team member, definition of a personal development plan, and career aspirations and potential. Focusing on the future keeps those that did well in the past from resting on their laurels and prevents those that have underperformed from wallowing in despair. Once this discussion of the future takes place, these plans and areas for emphasis become topics to be touched upon in the ongoing 1:1 meetings.
3. The performance review needs to be an effective discussion regarding expectations and performance. The review is more than providing a rating score of performance or announcing the impact on compensation. In fact, these two things often get in the way of clear communication regarding just how the team member is perceived and what they might expect in the future of their career. Here are some further points to make it an effective discussion that benefits both the leader and the team member:
   • Schedule adequate time. A proper discussion of performance and future expectations requires some time, probably an hour, not ten minutes at the end of the day. As a leader, it is an opportunity to be utilized.
   • Prepare and provide a written summary of the major points of discussion. Sometimes the discussion draws out thoughts and emotions that make it difficult for the team member to capture the entire discussion. A document provides a point of reference for future review.
   • Deliver the rating and compensation news at the end of the meeting or even at a short follow-up session. The team member can focus too much attention on the numbers and tune out the discussion if they see these first. The value is in the discussion.
   • Don’t rely on your own perceptions. As you are preparing for the meeting, seek input from other people in the organization that are familiar with the team member’s work so that you aren’t biased in your review or only have part of the story.
   • Make the review meeting a two-way discussion. Ask the team member to come prepared to also review your performance as a leader. By doing so, you first take some of the fear out of the process and also may get some important feedback, even perhaps some feedback that might impact your perception of the team member’s performance.
   • Appropriately stage the meeting. Meeting at your desk might not be the best setting for a discussion of your working relationship and the expectations that you have for the team member. A small table somewhere, perhaps even a lunch meeting, may be a better environment for the type of discussion that best serves the long-term function of this meeting.

An effective leader is continually building towards the future and developing the relationship through which he or she can influence the members of the team. The entire performance review process – impromptu guidance, 1:1 discussion, and the periodic review/rating – is a platform for doing so.

Are you providing and receiving necessary feedback with your team members? What other tips do you have for optimal use of the performance review process?