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For all the effort organizations put into their review process, it?doesn't appear to be paying off.

According to a Gallup survey only 2 in 10 employees gave their reviews a passing grade and only 1 in 10 was inspired to improve their performance.

How Did We Get Here?

Performance Management Systems are designed to contemporaneously document performance to assist with employee development, recognition, pay for performance, succession planning and improve performance. So why is a process with the potential to do so much good; mistrusted by so many?

But before we get to that answer let's ask the more germain question; how do you construct a process that holds people accountable for their performance; is accurate, timely, developmental and inspiring?

Automated systems are designed to digitally streamline the old paper performance reviews and their cumbersom work flow. These systems for the most part do a good job at streamlining the administrative workflow process relieving users from the generic form, and it's tedious workflow; so why is there so much contempt for the process? The short answer is, under utilization of the automated features of the new system. Is it time to rethink performance management?

The single annual review is the typical practice for most employees and therein lies a problem. In today's white water interconnected world, a single annual review is too little feedback too late. A coach gives feedback during the game, not when it's over. An automated system's ability to facilitate real time employee/manager communications and share contemporanious record notes is grossly under utilized.

"The first rule of technology is that automation applied to an efficient process magnifies the efficiency. The second is that automation applied to an inefficient process magnifies the inefficiency". Bill Gates

Automation isn't a panacea. The cumbersome administrative side of the review process has been corrected, yet the reviews remain inaccurate, stressful and ineffective.

What Have We Failed to Do?

Most reviews are awash with competencies focused on behaviors and attitudes, and skills that are vague and difficult to ameasure. This singular focus is treated as an HR process and not a business imperative and this tends to weaken the alignment of critical organizational, departmental and individual goals. Compency management is important but if under supported with measurable goals, and objectives, reviews appear subjective; which is the salient denouncement of the review process.

Best Review Practices

Performance measures or goals may not have equal importance and need to be prioritized by assigning weightings as a % reflecting the importance of a competency or goal. The prioritization of performance measures should be established by manager/employee collaboration and not unilaterally by the manager.
There should be at least two or more employee/manager reviews per year. The longer the time between reviews the shorter the memory and the greater the inaccuracy - the pet peeve plaguing reviews. No one wants to be surprised by a negative event in a review . Employees want accurate and developmental reviews to help them grow their careers.
Record Notes are to the appraisal review as Mortar is to a brick building. Contemporainious Record Notes are the building blocks to successful stress free and accurate reviews yet they are the most underutilized feature of an appraisal process. Some systems make it difficult and complicated to add record notes such as copy and paste. Look for systems that integrate them automatically into the review and encourage employees to regularly update unusual activities, issues, and opportunities using record notes, which can be selectively shared in real time back and forth between manager and employee.
Record notes with or without attachments are powerful stress relievers come review time and effective problem solvers in real time. They provide documentation of an ongoing issue, problem or opportunity and they can be used to provide contextual information to solve or avert operational problems, and provide instant recognition. Next time an employee or manager needs to communicate think record notes; texting - think record notes; email or voice mail - think record notes; one on one face to face although highly recommended but not always practical - think record notes.
Record notes can be time released, searched, updated, deleted, and are integrated automatically into the review without any copy past. Log in to your PM system from your computer, mobile phone, or any internet compatible device to create, edit, or share a record note with your manager or your employee. System generated email notifications alert the receiver of the record note. Unlike texts, email, or voice mail that are cast to the wind record notes are documented, categorized, and appear with a single click in the appraisal thus injecting accuracy into the review; and eliminating blind sided feedback which is the bane of many reviews.
Employees working closely with secondary managers from different shifts, projects or locations should be part of the feedback provided to the employee and these other managers can be easily invited to share their feedback with a convenient system invitation from the primary manager.
The use of artificial or canned feedback is a definite taboo. A manager can't expect an employee to go the extra mile to do their job if the manager short changes the employee's feedback with canned phrases.
Employees and managers receive an electronic reminder to release a draft of their appraisals to each other prior to the scheduled face to face meeting. This best practice is a huge stress reliever. No employee wants surprises in their review.
Managers should be open to making revisions to the employee’s review during and following their meeting.
The employee is always last to sign their manager's appraisal electronically but only after revisions if any have been made following the face to face and signed by the manager and or a Higher-Level-Manager /or HR if required.
If employees don't have a computer the manager can revise if needed and print out their review.
Ideally the review should provide a Performance Optimization Plan for each employee; designed to bridge performance gaps by capturing suggestions for improvement embedded in the review

Summary

Performance Management Systems are perhaps the most under utilized system in some organizations which has led to their demise, mistrust, and contempt in those companies.

Utilization of the system's goal and competency management features and conducting micro reviews throughout the year will result in a better review experience.

Performance management allows managers to identify top performers for recognition, and leadership development and those employees struggling and in need of training. Don't throw the baby out with the bathwater. Implement the above best practices to restore trust in your employee's reviews.