Most of us in the corporate world have to deal with a yearly review, and we hate it. How about just letting employees know when they are performing way under or way beyond expectations? That would save companies a lot of wasted time. Is it a good idea?
With all due respect, we think it’s a terrible idea! Look, companies can’t win without great people, and you can’t develop great people without performance appraisals. Now, we’re not talking about elaborate forms and piles of paperwork. That’s way too bureaucratic. All managers need to do is sit down with each direct report and share with him or her a single page that says: “Here’s what you do well,” and “Here’s what you can do better.” And that should happen not once a year but—brace yourself—three or four times, particularly with every raise, bonus, or promotion.
We’ve said in this column before that managers have many jobs. In the question above we’ve even added preparing for global warming to the list. But at the end of the day, almost no managerial responsibility trumps building the best team. And to do that, you can’t just connect with the outliers. Everyone needs to know where he or she stands, and often.
This question and answer originally appeared in Business Week magazine on February 26, 2007.
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