628: How To Conduct A Performance Review Meeting

My Business On Purpose

Ick... that’s what most Owners AND team members think when they hear the dreaded phrase, “Performance Review”.

To the Owner, you might as well have said, “Hey, you want to spend loads of hours preparing for an uncomfortable discussion that will be totally worthless?”

To the team member, you might as well have said, “Hey, would you like for me to stick a hot poker in your ear?’

Truth is that Performance Reviews are very rarely an actual review of performance and are more often than not a mis-matched reflection of previous work with no clear outcomes nor forward-facing objectives.

Are they even necessary?

We would like to propose a different type of review... an actual PERFORMANCE REVIEW!!!

It’s the same words with a completely different method and purpose.

Ultimately, the Owner wants the team member to do what the business needs, to accurately assess the team member and how they are doing relative to what the customer and the business needs them to do in their role and beyond.

The team members will want the question answered, “am I doing what is needed and beyond, and what can I get even better at?”

We’re going to make this quick because we want it to be intentionally simple.

You need FIVE tools for a great culture of performance, and for reviewing the performance. In fact, these tools will not only be used on Performance Review Day but EVERY DAY!

The very first tool you need for great evaluation of performance are the unique core values of your business. The values are those filters for great decision-making, and the curbs along the side of the road keeping you in bounds towards the vision.

It is possible to have great performance and effort misaligned with the values which will lead the team away from the vision.

Your unique core values serve as an anchor for each team member to ensure that all performance is progress-based performance that ultimately leads towards the vision.

Next, each team member needs a written Job Role.

If you have not already been through our module on Job Roles, please refer to that module and make sure that EVERY SINGLE team member in your business has a role, is clear on the role, is relentlessly trained on the role, and is reminded of the role.

YES, all of those things I just mentioned.

“But I showed them the role when they started!” Yes, and assuming that you are hiring humans, we all need to be reminded regularly...even you.

The third tool needed to review great performance is a simple 12-week plan or whatever consistent goal-setting tool you use in your business.

The goals you set throughout the year should be tracked for their implementation and effectiveness towards the vision.

Again, refer back to our module on goal setting with the 12-week plan and IMPLEMENT!

Finally, you need a repetitive series of one-to-one check-ins to reflect back on.

These one-to-one check-ins should occur no less than once monthly and should include core questions such as…

1. Where have you seen a true story this week that lives out our mission or values?

2. What are you seeing/thinking?

3. What blind spots do you see?

4. What do you need from me?

5. Here is what I see/need from you…

Ask those questions sincerely and repetitively, document the responses, and that will give you excellent content when it is time to conduct your performance reviews.

One more tool that will ensure that your performance reviews actually happen at a time that is valuable to you and your team members…your calendar.

Go ahead and set the dates on your calendar in November of the previous year for the following year's performance review dates so there is no surprise.

Here is how these tools will play out to create a Performance Review that actually works and doesn’t suck the life out of your days!

At least once per year, the you (or the immediate manager) will sit down with the team member during Performance Review day and walk through the performance review template; reflecting on how the team member has lived out the core values, how they have met (or not) their top 3 job role tasks, how they completed their priority goals throughout the year, and listening back in on the general themes from your no-less-than-monthly one-to-one check-ins.

There is a final section in the template for you as leader to provide feedback on how the team member can grow in their role over the next 6 to 12 months.

The values ensure each person is in-bounds with their performance aligned to the vision.

The role ensures each person is owning the tasks needed to help the team move forward.

The goals ensure that each person has a hyper-focus on any adjustments that are required throughout the year.

The check-ins ensure that each person has a platform for feedback and coaching.

The calendar ensures that we make the time for each of these items.

By the way, any gaps in performance require YOU as the leader to take ownership of the disparity first. How will you ever coach the mindset of ownership if you are unwilling to own it yourself?

There is one more tool... the missing piece to the power of pushing towards great performance reviews for you and your team... it’s IMPLEMENTATION.

I will take a half-baked plan with full implementation versus a perfect plan with half-baked implementation.

I quote Joe Calloway all of the time because it is so powerful, “Vision without IMPLEMENTATION is hallucination”.

If you take time to build out proper software with proper processes, you will have greater clarity in the WHO of your business.

Now go live out your business on purpose!