How to Transform Performance Management Practices

Does employee performance at your company rely on a single, a once-a-year rating? Are you optimizing for storytelling or outcomes? How we measure performance directly impacts the results we get. In order to leverage performance systems to compound employee impact, we need to look holistically, at data captured over time to understand trajectory and velocity of employee outcomes. Here are 5 ways to evaluate performance beyond the 5-point scale: ➤ Level Progression: Progression measured by performance across competencies for their role at their level (which can go up or down over time, but generally show the directionality of someone's progress). ➤ Growth Rate: How are employees performing in their level, over time? Growth rate measured by % of change over time (up or down). Rather than subjective "potential" see potential through growth velocity of individuals or teams. ➤ Skill Density: Measure of performance across specific skill dimension. Enables you to benchmark strengths or weaknesses (e.g., IC4s light on "Execution") by function, level, geo and other factors. ➤ Alignment Rate: Are managers and employees aligned on performance expectations? If yes, performance improves, if no, it goes down. Alignment rate is measured by how employees rate themselves vs, their manager. The more dimensions, the greater the alignment potential. ➤ Distribution: Not looking for a bell curve here, but understanding talent density. How do you get the most employees performing their best, and are folks evaluated properly? Why this is different: • Transparent performance expectations and observable behaviors • Focus on nuances of individual performance and growth trends • Alignment as an improvable metric to achieve greater outcomes • Fosters proactive performance improvement (vs. corrective PIPs) 👉 Want the 60-min crash course on building a modern performance program (levels, frameworks, feedback, goals, assessments)? Comment “crash course.” Tagging a few folks here that I know are focused on performance transformation (give them a follow!): Russ Laraway, Lissa Minkin, Shelby Wolpa, Kim Minnick, Jessica Z.

Rolling out a new performance management initiative across multiple locations can be a daunting task. Especially when the company has been used to filling out reviews on Excel. But that's exactly what I helped a manufacturing company do. Here's how we tackled this challenge: 1. We started by understanding the current process. Excel-based reviews were familiar, but they lacked consistency and made data analysis difficult. 2. Next, we identified key stakeholders at each location. These champions would be crucial for driving adoption. 3. We chose a user-friendly performance management software that could be accessed from any location. 4. Training was a critical component. We developed a comprehensive program that covered both the new system and best practices for performance management. 5. We created a communication plan to keep all employees informed about the changes and benefits of the new system. 6. A phased rollout allowed us to address issues at each location before moving to the next. 7. We established a feedback loop to continuously improve the process based on user experiences. 8. Regular check-ins with location managers helped us track adoption rates and address any resistance. 9. We developed custom reports that provided insights previously unavailable with the Excel-based system. 10. Finally, we celebrated early wins to build momentum and encourage continued engagement. The transition wasn't without its challenges. Some employees were resistant to change, and there were initial technical hiccups. But by staying focused on the benefits - improved consistency, better data analysis, and more meaningful performance conversations - we were able to overcome these obstacles. The result? A streamlined performance management process that spanned all locations, providing valuable insights for both employees and management. If you're facing a similar challenge in your organization, don't hesitate to reach out. Together, we can transform your performance management process and drive better results across all your locations.

𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐀𝐩𝐩𝐫𝐚𝐢𝐬𝐚𝐥𝐬 : 𝐣𝐮𝐬𝐭 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐚𝐧𝐝 𝐫𝐚𝐭𝐢𝐧𝐠𝐬 ? Appraisals are often seen as a scorecard, a moment in time where performance is measured and rated. But shouldn't we be looking at these another way? Performance appraisals have long been perceived as an evaluation tool and an assessment of what’s been achieved in the past year. But if we truly want to develop talent, we must shift the lens. 𝐀𝐩𝐩𝐫𝐚𝐢𝐬𝐚𝐥𝐬 𝐬𝐡𝐨𝐮𝐥𝐝𝐧’𝐭 𝐛𝐞 𝐨𝐧𝐥𝐲 𝐚 𝐫𝐞𝐟𝐥𝐞𝐜𝐭𝐢𝐨𝐧; 𝐭𝐡𝐞𝐬𝐞 𝐬𝐡𝐨𝐮𝐥𝐝 𝐛𝐞 𝐭𝐡𝐞 𝐥𝐢𝐠𝐡𝐭𝐡𝐨𝐮𝐬𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐰𝐬 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭𝐢𝐨𝐧 A holistic appraisal is much more than ratings and checkboxes. While performance metrics and KPIs provide structure, they don’t capture the full picture. What about the challenges an employee navigated? The skills they acquired? The impact they created beyond defined goals? Their aspirations for the future? If appraisals only measure the past, they miss the opportunity to shape what comes next. This is where feedforward becomes critical—shifting the focus from evaluation to evolution. Instead of just identifying gaps, conversations should center around where an individual wants to go, what skills they need, and how the organization can support that journey. The shift from once a year review to a continuous feedback culture is just as important. Growth is built through ongoing dialogue, coaching, and alignment between individual potential and business needs. When approached this way, appraisals build careers and strengthen the organization’s future. What practices have you experienced/ implemented that made your performance appraisal mechanisms richer? #PerformanceManagement #Feedforward #Appraisals2025

She thought she was doing HR right. She followed every process. She kept the calendar of cycles moving. She checked every box. But despite her consistency and hustle, nothing really changed. Engagement stayed flat. Leaders barely showed up for calibration. And her inbox? Overflowing with questions that her systems should’ve answered. She came to me and said, “I’m working harder than ever. Why does it feel like I’m not making an impact?” So I asked her a simple question: “What would happen if you stopped tweaking the process and started questioning the purpose?” That stopped her. Because like a lot of HRBPs, she was taught to execute - not disrupt. To optimize, not redesign. To “partner,” but often from the sidelines. We started pulling at the threads: Why are we still using 9-box if no one trusts the data? Why are we doing action plans no one follows? Why do we keep “launching” things that don’t land? Together, we asked a bolder question: “What if we designed NOTHING by default?” That meant starting with outcomes - not templates. She reframed her work around 3 anchors: 💡 Clarity – does every employee know what success looks like? ⚡ Energy – are our programs fueling teams, not draining them? 🚀 Momentum – are we helping the business move faster on what matters? Everything she built had to move the needle on at least two. If it didn’t? She'd let it go. She stopped running 12 steps of performance management no one used. She co-created with the business, not for it. She ditched long playbooks and built leader toolkits based on real conversations. And the result? Teams got clearer. Engagement scores climbed. Her leaders? They started pulling HR in - because now, she was delivering value they could feel. Her inbox slowed down. Her influence sped up. And her identity shifted from “solid operator” to strategic driver of how work really happens. Here’s the truth I watched her learn: You don’t drive transformation by tweaking the old model. You drive it by ditching the assumptions underneath it. So if you’re a mid-career HR pro wondering how to make a bigger impact… Start here: Ask what you’d build if you weren’t tied to legacy. Design for clarity, energy, and momentum. Partner with people who challenge your thinking, not echo it. Because complexity is easy. Simplicity takes courage. And the next era of great HR? Belongs to the ones bold enough to start over.

Who thinks it’s hard to implement a performance management process? I would say it is, but I think it’s even harder to actually 'do' performance. Lets step out of our HR shoes and into the employees for a moment. From the employee’s perspective, performance management is a skill set they might not have been trained in. Most employees know how to do their jobs well. They can intuitively work through the tasks and decisions they face every day. They understand what's important and the scope of their responsibilities. But they often don’t know how to navigate performance management. Why is it so hard to 'do' performance? 1. Feedback can feel awkward - Giving feedback is a skill and people don't like to feel like a beginner in hard conversations - they worry about saying the wrong thing. 2. High-stakes - Performance conversations can feel deeply personal. - They can trigger anxiety or defensiveness, especially when pay is involved. - Managers wonder how their feedback will be received. 3. Lack of skill development - These skills are often taught but rarely practiced. - Managers and employees can feel a lack of confidence in these areas. 4. Time and complexity - Performance practices compete with 'the real work' and employees can see it as a ‘nice to have’ rather than essential. - The process feels too hard to master or it's disconnected from what drives impact. HR must go beyond just implementing the process or the tech. This means: 1. Designing with empathy - Create processes with employee input. - Make the flow intuitive and tailored to their needs. 2. Simplifying the process - Strip away unnecessary complexity. - Focus on high-impact activities like regular check-ins or feedback. 3. Helping managers and employees up-skill - Creating opportunity to practice giving feedback and coaching conversations. - Offer simple guidelines for performance conversations. 4. Building a performance culture - Foster an environment where feedback is normalised. - Help employees feel safer and more confident. By stepping into employees’ shoes, HR can turbocharge the 'doing' of performance management. And when performance is connected to improving work results and personal growth... it becomes an unremarkable, but meaningful part of the day that helps organisations thrive.

The (very real) conversation I had with a founder last week: Me: “Why do you feel you need annual performance reviews?” Founder: “Because I want to know who my top performers are and take action on poor performers.” Me: “Isn’t that what your managers should be doing… every single day?” This mindset still surprises me. We’ve all inherited the legacy of the formal “annual review” system, but I have never, ever seen a poor performer suddenly become a top performer thanks to a performance review form. That transformation only happens in the relationship between employee and manager! It happens when managers coach, challenge, guide, give feedback, support, and sometimes… have tough conversations. 💡 My advice to founders: skip the outdated process. Invest in your managers. You will: ✔️ Boost both performance and engagement ✔️ Save time and money ✔️ Build a culture of real conversations, not annual paperwork And… your employees will thank you. (They’ve never loved this tedious process anyway!) Performance happens in real time. Not once a year. Rethink your systems. Start with your managers. #PerformanceManagement #Leadership #PeopleStrategy #FromZeroTo1000 #ScalingStartups #StartupCulture #FounderTips

I ran $10bn transformation projects at McKinsey. We were taught the 'Influence Model' Companies using all 4 parts are 8x more likely to undergo a successful transformation. 1. Understanding & Conviction Leaders assume everyone understands the "why" because they've said it once.(Stanford research calls this the "curse of knowledge.") To make transformation work, you need to: → Build a change story. This answers: "What's happening in the market? Why can't we stay the same? What happens if we don't change? What does success look like?" → Make sure employees hear the message multiple times (7 times min.) → Don't only rely on townhalls. Use 1:1s to build conviction. 2. Role Modeling People don't listen to what leaders say. They watch what leaders do. Don't go back to business as usual To make role modeling work, you need to: → Identify 3-5 informal influencers per team. Not managers. The people others actually watch. Get them on board first. → Leaders must do something visibly different in the first 30 days. Cancel an old meeting. Promote someone who embodies the new way. Reallocate budget publicly. → Find teams already doing it well. Make them visible. People copy what gets rewarded. 3. Formal Mechanisms You can communicate the vision. But if your incentive still rewards the old behavior, nothing changes. To make formal mechanisms work, you need to: → Change KPIs, don't just add new ones. Adding "customer satisfaction" on top of 15 existing metrics means it gets ignored. → Update performance review criteria in the first 90 days. If reviews still evaluate old competencies, the new behavior is optional. → Create visible consequences for resistance. If senior people ignore the new direction and nothing happens, you've told everyone the change is optional. 4. Skills & Capability Most companies treat training as a launch event. One workshop. One e-learning module. Then they're surprised when nothing changes. To make capability building work, you need to: → Train by role. Frontline needs hands-on tool practice. Managers need coaching skills. Executives need message alignment. → Train just-in-time, not just-in-case. Training 3 months before people need the skill means they forget. Train the week before. → Create practice environments. Let people make mistakes in a sandbox before going live. → Build ongoing coaching for the first 90 days. Office hours, help desks, embedded support. This is where most companies under-invest. Most companies focus on training and systems. But if people don't understand why, and don't see leaders changing first, training doesn't stick and systems get bypassed. All 4 parts. At the same time. That's what makes it work.

Performance management doesn't drive engagement. Performance conversations do. And right now, most managers are getting this wrong. The data from McKinsey is clear: → 77% of employees feel motivated when they receive ongoing feedback → Only 21% feel motivated when they have no development conversations. The gap is the conversation or the lack thereof. What actually drives engagement: Clarity > Judgment → Employees don't fear honest feedback; they fear ambiguity. Connect their work to strategy. Show them where they stand. Anxiety drops. Performance rises. Development > Evaluation → Shift from "Here's what you did wrong" to "Here's how we'll help you grow." Ask: "What obstacles are blocking you?" not "Why didn't you hit this target?" Frequency > Formality → Monthly check-ins matter more than elaborate annual reviews. Quick conversations that adjust goals, remove barriers, and acknowledge progress compound into sustained engagement. Here's what many leaders miss: Employees who can predict their review feedback (because they've heard it all year) perform better than those blindsided. The review should be the least surprising conversation of the year.   Try this: Pick one team member you've been avoiding a real conversation with. Schedule 20 minutes this week. Ask: "What's blocking you that I can remove?" Then watch what changes. What conversation have you been avoiding?

https://lnkd.in/eZf6zs4d JUST PUBLISHED in Academy of Management Perspectives! From Ritual to Results: How Evidence-Based Performance Management Changed Work—and What Comes Next 1️⃣ Start with real managerial pain, not abstract gaps. The most influential research began with a problem managers genuinely hated: Annual performance reviews that consumed time and produced no value. Grounding research in lived managerial frustration creates immediate relevance and pull from practice. 2️⃣ Redefine performance management as a continuous system, not an annual event. High-impact work reframed performance management as an ongoing cycle of goal setting, observation, feedback, and coaching aligned with strategy. This shift fundamentally changed how organizations use performance data for decisions about pay, development, and talent. 3️⃣ Challenge entrenched assumptions—even at publication risk. Empirical evidence showing that performance follows heavy-tailed (not normal) distributions upended decades of theory and practice. Although initially rejected by top journals, this work reshaped how organizations identify, reward, and manage star performers. 4️⃣ Impact requires deliberate translation across multiple channels. Textbooks, bridging journals, practitioner books, consulting, policy engagement, traditional media, and social media each reached different stakeholders. Sustained impact came from treating dissemination as a strategic activity, not an afterthought. 5️⃣ Treat impact as a long-term, planned journey—not a single publication. The article shows that meaningful impact unfolded over decades through teaching, cumulative research programs, and outreach. Researchers and leaders who invest in absorptive and transformative capacity are far more likely to change practice and policy over time. Get the article: Aguinis, H. 2026. Lessons on how evidence-based performance management changed practice, policy, and talent decisions. Academy of Management Perspectives. https://lnkd.in/eZf6zs4d Watch an AI-generated explainer video: https://lnkd.in/ea8NccQ8 Watch an AI-generated podcast: https://lnkd.in/eRBwuQGs https://lnkd.in/eZf6zs4d HR Division - Academy of Management HRM Section of the Spanish Academy of Management. Sección de Recursos Humanos de ACEDE British Academy of Management HRM Special Interest Group AOM STR - Strategic Management Division Australian & New Zealand Academy of Management Eastern Academy of Management GW Business Alumni Iberoamerican Academy of Management Management Faculty of Color Association (MFCA) Midwest Academy of Management AOM Organizational Behavior Division The George Washington University The George Washington University School of Business The PhD Project Western Academy of Management (Official Site) Mike Barnett