
Performance Management Revised
Traditional Reviews Fall Short
For years, companies have relied on lengthy performance reviews. However, these efforts often fail to show clear improvements in performance.
A Real-Life Example
I coached a senior executive at an international company who was preparing for a career advancement. His manager provided a report based on an assessment, highlighting areas for improvement—especially his relationship with peers.
After investigating, we discovered that the manager initiated the assessment based on hearsay. Over the past three years, there had been little to no feedback between the executive and his manager. The performance review process involved the executive setting his own objectives, and the manager claimed he resisted feedback. Unfortunately, this situation is common in many organizations.

The argument for change
Why Traditional Systems Are Failing
Many organizations realize their current performance management systems don’t deliver the expected return on investment. Only 1 in 5 employees feel motivated by these systems. Despite investing time and money, many businesses end up losing their best talent.
A Shift in Workforce Expectations
The future of work is rapidly changing due to technology, globalization, and information overload. Employees now seek more than supervision—they want coaching. They crave clear expectations, accountability, a meaningful purpose, and frequent feedback.
What employees are demanding
Insights from a Decade of Research
Research and company experiences over the last ten years show that managers play a crucial role in successful performance management.
Today’s employees expect meaningful work and managers who care about them as individuals. They need ongoing communication, clarity in their roles, and chances to grow and develop professionally.


There is a better way
Moving Beyond the Old Model
To meet these new demands, performance management must focus on developing and inspiring employees. Traditional reviews often feel unfair and infrequent, which leaves employees disengaged and unmotivated.
What Needs to Change
Organizations don’t need to throw out all traditional practices. Instead, they should improve how performance conversations and progress reviews are conducted. When done right, performance evaluation can drive accountability, fairness, and growth.
The Role of Managers
Leaders must adopt a continuous development approach. This involves managers understanding their team members’ strengths and engagement needs. They should use this insight to set expectations, coach regularly, and build accountability.