Ditch the Performance Review

The pace of business is fast. In this landscape, the traditional performance review has become an artifact of the past—a relic that fails to keep up with the dynamic needs of today's organizations. ?

Truth be told, I’ve always been troubled by performance reviews. I didn’t like them when I was working inside an organization. I don’t like them now that I consult with organizations. ?

Why don’t I like performance reviews? ?The focus and the frequency. The traditional performance review is focused on the past. Given the pace and complexity of business today, looking backward isn’t very useful. Looking backward offers little value in a world where agility, responsiveness, and continuous improvement are paramount. ?

Secondly, if someone isn’t as engaged as we would like or performing at the level we believe them capable of, why would we wait until a quarterly, semi-annual, or (God help us!) annual review meeting to talk to them about it? How do you fit a quarter or year’s worth of observations into one conversation and have it mean anything? ?

Waiting for an annual review to provide feedback about something that happened weeks or months ago is akin to using yesterday's news to make today's decisions. A forward-focused approach, centered around coaching and real-time feedback is what we need in today’s organizations.?

As leaders, our mission is clear: engage and empower people and activate our teams. The paradigm shift from reactive retrospection to proactive alignment and development is not merely a conceptual tweak but a fundamental transformation in how we manage performance and foster growth.?

Imagine discarding the antiquated performance review ritual and embracing a dynamic system of contribution management powered by coaching. Picture crafting 90-day action plans that lay out a person’s desired contributions, coupled with coaching conversations that propel that person toward their goals. Envision collaborative discussions where leaders inquire about the support their team members require and commit to creating the conditions for them to succeed.?

The shift is not just in the mechanics but in the mindset—one that appreciates the value of continuous coaching, real-time adjustments, and a shared commitment to progress. It's a leadership revolution, a departure from the norm, where accountability thrives, and individuals feel seen, valued, and motivated.?

So, why persist with a practice that belongs to a bygone era? The call to action is clear: let's bid farewell to the performance review and usher in an era of contribution management. You don’t have to wait for your organization to change its policies and procedures around performance management. If the organization is still locked onto the annual or quarterly performance review, there’s nothing stopping you from shifting how you lead your team. You can coach your people, giving real time feedback and make the official performance review meeting irrelevant. You’re a leader —?lead. As we navigate the future, the question lingers —?how can we lead if we're constantly looking back??

Cheers, Greg

About the Author

Dr. Greg Giuliano is an advisor and executive coach to senior executives and teams all over the world, designing change leadership and team development strategies to lead organizational transformation. His mission is to help leaders and teams grow their capacity to enable positive disruption for markets, organizations, teams, and individuals.

Greg is the author of the #1 Amazon Bestsellers The Next Normal, Ultra Leadership, and The Hero’s Journey: Toward a More Authentic Leadership.