Performance Management

Run performance management systems that set expectations, review outcomes fairly, and differentiate performance without destroying trust. Use when designing review cycles, calibrations, or continuous performance practices.

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Performance Management

Overview

Performance management aligns people to expectations and development. Effective systems are continuous enough to be fair, structured enough to be consistent, and humane enough to be credible.

When to Use

  • Designing or reforming review cycles
  • Calibration processes
  • Performance improvement plans
  • Linking performance to pay and promotion decisions

Core Practices

  • Set clear goals and expectations at the start of cycles
  • Encourage ongoing feedback, not only annual events
  • Use multi-source input where appropriate
  • Calibrate ratings across teams to reduce bias and inflation
  • Separate development conversations from pure evaluation when helpful
  • Document decisions that affect pay and employment status

Principles

  • Surprise poor ratings are a process failure
  • Forced curves without context create cynicism
  • Managers need skill, not only forms
  • Fairness perceptions matter as much as technical accuracy

Verification

  • Expectations are set before evaluation periods
  • Calibration exists for material decisions
  • Employees understand how performance is assessed

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Frequently asked questions

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