Annual Performance Reviews Don’t Work

[Photo credit: Walsh]

What if you were on a diet but only were allowed to weigh yourself once a year? How likely would you be to stick with it?

If your answer was, “Not a chance,” why is it okay to have once-a-year performance reviews? Does anyone actually think that one uncomfortable hour once a year is any substitute for effective leadership? Seriously? Why waste the time?

If you really want your performance management system to work it has to have two essentials:

  1. It has to be a system
  2. It needs to provide continuous feedback

If you’re doing anything else, it’s just a game to make the lawyers and rule makers happy. Bad HR is about blindly going where everyone has gone before.

When Pay-for-Performance Goes Bad

There’s a very intriguing article in the NYT this morning titled “The Pitfalls of Linking Doctor’s Pay to Performance.” It’s a cautionary tale about the Law of Unintended Consequences.

When you’re designing your incentive plans, think about this. Are you emphasizing what you want? And what are the potential risks?

How to Write Your Self Evaluation

This cracked me up. All the action words are there.

I’d Like to Thump Chest Thumpers

Usain Bolt Thumps His Chest
[Photo credit: Daily Nation]

Usain Bolt is the fastest man in the world. He won the 100-meter race in 9.69 seconds. A world record. And I don’t like him.

If you’re a manager or in HR, you shouldn’t either. You see, Usain Bolt is an incredible talent. Perhaps the best sprinter ever. But I’d never have him on my team. Know why? The chest thump saying “Look at me!” when he had 15 meters to go. Showing off. Had he run through the finish line instead of waving his arms and taunting his competitors, he could have done even better. Much better.

Sure, running is an individual sport. But there are lots of people around Usain Bolt who helped him run like he does. Do you think he thanked a single one in the interviews? Even mentioned them? Nope. It was me-me-me. While there’s a place for individual achievement — even extraordinary achievement — on my team, there’s no place for chest thumping. That kind of self-centeredness just doesn’t work in business. Be great. But know what got you there.

I’m a Fan of a Little Exclusivity

Lord, Give Me Patience, But Give It To Me Now
I’m at a hotel on a famous square in Boston as I write this. I’m sitting in the lobby watching hundreds of people flit this way and that, most of them dressed in Boston Red Sox shirts and caps. And with all this activity and buzz, it’s the quietest it’s been this morning. You see, I just came downstairs from the Concierge Level.

Quick, Everyone Get on the Plane at the Same Time
Remember when having frequent flier status meant something? When they called for “Plutonium Status” and it didn’t start a cattle call for very single person on the plane? Or when concierge level meant that you didn’t have to fight like underfed pigeons for the last scrap of bread in the free breakfast line? That’s when a little exclusivity went a long way.

All Animals are Created Equal, It’s Just That Some Are More Equal Than Others
Your best people feel the same way. Sure, there are legal and cultural reasons to treat everyone the same. That makes sense for workplace and career elements. You have to. But everyone isn’t the same. Not when it comes to top performers. And, trust me, they want a little exclusivity.

Exclusive and Elitist Are Not the Same Thing
I’m not talking about being an elitist. I’m the farthest thing from that. My dad was a Chicago cop, I grew up in a big family, and I feel lucky for everything I get. But I am talking about making distinctions based on performance. It’s what pay-for-performance should make happen. It’s not enough for your high performers to get one percent more than your average performers. It has to be 10 percent, 20 percent, or 100 percent more.

Know What to Expect and When To Expect It
Which brings me back to where I am. I don’t consider it a benefit to eat in the concierge lounge when there are more people there than at a Red Sox game. (They had their 400th consecutive sellout last night. A record.) Because I have a certain membership status, I sorta kinda expect that it’s meaningful. If it’s not, I’d just as soon know that. And I’ll pay for my own breakfast that hasn’t been touched and prodded by 50 overanxious people ahead of me in line. And that’s the kind of exclusivity I’m talking about — the kind where you know what to expect and then get it.

A Little Bonus Thought
NB: If you’re in the hotel business, charge $5 for the concierge breakfast. That which is offered for free, is valued for free. (And it keeps away the pigeons.)

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