Situation: A company is preparing for end of year reviews. They use several performance measures to evaluation employee performance, including 360 Reviews. The challenge is that both managers and peers tend to rate everyone at the highest levels – even though everyone knows that this is not valid. How do you get managers to honestly rate their teams?

Advice from the CEOs:

• This is a common problem for companies. The central issue is that managers want to get on well with their teams, and may fear that giving someone a less than stellar review will impact individual and team performance. You have to change both the perspective and the methodology.
  • Start with the basics. Performance reviews are about communication and documentation.
  • Expectations should be based on an up-to-date Job Description for the position.
  • Job Descriptions should address skills, expertise and behavior. Clarity and specificity are essential.
  • They should anticipate growth, and include standards of performance to measure growth.
  • To prepare for a review meeting, the manager rates the employee against the standards specified in the Job Description, as well as any objectives established in past reviews. The employee self-rates against the same measures.
  • Following the review meeting, the manager must document the discussion and objectives for the next period set during the meeting. The employee reviews and signs this document.
• For managers, a key performance measure is quality and substance of reviews.
• Besides individual reviews, have your managers rank their people 1 to X along several metrics:
  • Team performance
  • Reliability on the job
  • High or low maintenance

• Use zero based thinking: Knowing what I do now, would I hire this employee for their current position?
• Align the review process with the company’s goals.
• Do a total ranking among company employees. Tell managers that those ranking last place(s) must be upgraded. The CEO approves the final ranking.

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