It’s time to ditch the annual review

The traditional annual performance review has become an antiquated relic. It slows the feedback loop which is detrimental to the company and to the team member.? It also creates a ton of work at year end with a heavy process for both the team members and for the leaders.? If you're anything like me, you've seen firsthand how these outdated reviews slow the feedback loop and causes your company to lose momentum.?

I coached a young and intelligent first-time CEO who had built the right product for his market, yet he felt stuck and isolated, unsure if his team understood his vision or shared his commitment. He spent his days firefighting operational issues and micromanaging his team, which left him exhausted and doubtful of his leadership abilities.

One day, he confided in me, “I feel like I’m constantly watching over my people to ensure they do things the right way. I don’t know if my people truly understand what I’m trying to build.”?

His story isn't unique. Many entrepreneurial leaders find themselves in similar predicaments. The annual review process only exacerbates these issues. Once-a-year feedback is too infrequent to correct course or address problems promptly. Leaders tend to hold feedback for the annual session and team members are often blindsided by the feedback. This delay often results in disengagement and a lack of alignment with the company's goals.

The Power of Weekly Execution Meetings

This is where weekly execution meetings come into play. These meetings bring immediate feedback and real-time adjustments. This continuous loop ensures that any issues are addressed promptly, preventing small problems from escalating into major issues. For my example above, this meant the CEO could spend less time micromanaging and more time on strategic initiatives.

By reviewing progress continually, employees become more accountable for their performance. They can track their progress against their goals and make necessary adjustments. This regular check-in also allows managers to provide support and resources as needed, ensuring that employees are not left to struggle on their own.

Frequent interaction with team members also fosters a sense of involvement and commitment. It gives you an opportunity to make sure your people feel valued and understood, which increases their engagement and motivation. They are more likely to be proactive in their roles and contribute positively to the company culture.

I start my weekly meetings with a "positive start," where the team member shares a recent success. This simple practice not only set a positive tone but also built a culture of recognition and appreciation. Employees were motivated to contribute because they knew their efforts were valued and celebrated.

Implementing Weekly Execution Meetings

To transition from annual reviews to weekly execution meetings, follow these actionable steps:

1. Decide on a Regular Schedule: Establish a consistent schedule for your weekly meetings. I like scheduling 50 minutes.
2. Create a Structured Agenda: Have a clear agenda for each meeting. Start with a "positive start" where the team member shares a recent success. Follow this with a review of the goals for the quarter, discuss any issues that need resolved, and allow for open issues that the team member would like to discuss.
3. Review the Quarterly Goals: During these weekly meetings, review their SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) goals. This is the focal point of the meeting.? You are able to ensure that they are either on track or you can help them get back on track if they need help.
4. Use a Stoplight System: Implement a simple stoplight system to track progress. Green indicates on track, yellow signals at risk but manageable, and red means off track and needs attention. This visual tool makes it easy to see where to focus efforts.
5. Celebrate Small Wins: Recognize and celebrate small achievements during these meetings. This positive reinforcement boosts morale and keeps the team member motivated.

By killing the annual review and embracing weekly execution meetings, you can transform your organization into a more agile, responsive, and engaged team. This strategy not only addresses the shortcomings of traditional performance reviews but also aligns with the fast-paced nature of entrepreneurial ventures. As I emphasize throughout my work , the key to successful leadership lies in loving your people and setting them up for continuous success. Adopting weekly execution meetings is a step in that direction, ensuring that your team remains focused, motivated, and aligned with the company's vision and goals.? It also allows the team member to stay connected to their leader.

If you found these insights helpful and want to dive deeper into transforming your leadership approach, grab a copy of my book, "Love Your People." It's packed with practical strategies and real-world examples to help you grow your business and develop your team.