Establishing Impactful Performance Reviews

As we wrap up performance reviews at Bluecore, I’d like to share how we established an impactful performance review process that supports our culture and drives the outcomes we most want to achieve — a two-way, transparent performance dialog between managers and employees.

Keep it Simple and Transparent

The performance review is an opportunity to position employees, the team and the organization for success. One of the most important best practices is to create a simple and transparent process that fosters trust, drives performance and promotes engagement. Ideally, the process flow should include multiple checkpoints throughout the year so that there are no surprises.

We kept a simple format to facilitate a two-way dialog between employees and managers. This ensures low performers know what they need to do to improve, high performers are recognized for successes and everyone is focused on making an impact. The review itself focuses on both job performance and the individual’s career development and growth. When leadership identifies what’s important to the employee at work, those factors can be leveraged into proactive insights that shape the discussion for a meaningful experience.

Collaborate on Goal Setting for Maximum Impact

It all starts with goal setting. Once the organization has developed objectives per the mission/vision, the objectives get translated to each team down to the individual employee. From there, managers can work with their employees to set goals that are tightly aligned to those business objectives.

According to research from Deloitte, employees whose managers involve them in goal setting are four times more likely to be engaged than other employees. It is the manager’s responsibility to not only ensure objectives are tied to business goals, but also to measure impact and provide clarity on what success looks like.

Focus on Performance, Strengths and Growth

During reviews and throughout the year, managers should track progress quarterly at a minimum, but ideally monthly. They should also modify objectives as needed. This is especially important in high growth companies that need to be agile and adjust plans to ensure impactful business results and for organizations that are in a state of transition and need integrative change management tactics. Our performance review format focuses on just that. Bluecore prioritizes three sections: Performance against objectives, individual strengths and growth opportunities.

We advocate our leadership to take a strengths-based approach to individual and team performance that maximizes the effectiveness of the team and enhances individuals skills. Research strongly suggests that this strengths-based approach leads to an 8% increase in productivity and a 15% increase in retention. At Bluecore, our attention is on ‘growth for impact.’ To achieve this goal, we look for opportunities to enhance the employee and manager relationship in order to improve skills, talents, strengths and knowledge during the review discussion, all in pursuit of career and company goals.

A Powerful Dialog

Every aspect of the review process at Bluecore is intended to set the manager and employee up for a powerful dialog that is diplomatic but honest in a way that fosters trust and engagement. We not only provided extensive training to our managers, but also to our employees so that everyone understood our performance philosophy, had a common vocabulary and knew how to get the most out of each feedback opportunity. Ultimately, this clarity around objectives and performance helps drive superior business results.

Guidance we shared with employees:

• Take ownership of your strengths and accomplishments through self-reflection
• Ask for feedback from key stakeholders, including peers
• Prepare in advance for the discussion by focusing on what you did, how you did it and what you learned along the way
• Have a perspective on areas you want to strengthen and grow
• Provide feedback up and collaborate on next steps

Framework we shared with managers:

• Provide a holistic view of performance by gathering input from key stakeholders in addition to your own assessment
• Be clear, concise and supportive
• Provide recognition for accomplishments
• Communicate the rating with context on both demonstrated achievements and any misaligned expectations
• Focus on 1–2 key areas for the employee to strengthen and grow
• Collaborate on action plans and next steps
• Ask for feedback on how you can be a more effective leader
• Prepare for a difficult conversation, including negative response scenarios

Set Up Your Team for Year Round Success

Finally, and perhaps most importantly, remember that the dialog does not begin or end with the performance review. Frequent formal and informal performance conversations throughout the year is one of the most effective ways to accelerate performance, engagement and growth.