Performance reviews are all about unlocking an employee's potential, guiding decisions on promotions and raises by spotlighting strengths and areas for growth. They're more than just a scorecard; they're a deep dive into how achievements are made, valuing teamwork, creativity, and company values as much as results.
However, making performance reviews interesting and effective is an involved process. Just winging it is not enough — you will simply be increasing the number of useless meetings in your company. They require structure, goals, and mutual understanding between the employer and the employee.
Enter OKR performance reviews, a game-changer that shifts the focus from just hitting numbers to driving meaningful change within the business. This method evaluates how well employees align with and contribute to the company's culture and goals, offering a more dynamic and engaging way to measure success.
NOTE: To learn more about OKRs and why I recommend using them, check out my article on Benefits of OKRs.
Conducting effective performance reviews is a skill that can significantly impact employee engagement, productivity, and morale. Here are some best practices to ensure these reviews are productive, fair, and beneficial for employees and the organization.
Setting the stage for a productive performance review begins with creating the right mental and physical environment. It should be a moment of connection and growth, not intimidation and scrutiny.
Also, keep in mind the overall workload of the person you are reviewing — scheduling reviews during a period of massive crunch is a bad idea.
Laying the groundwork for an effective performance review is all about preparation and foresight. You should be going into the review meeting with all the information you might need and a clear understanding of what needs to be done.
Integrating OKRs (Objectives and Key Results) into the performance review process transforms it into a strategic alignment tool, ensuring that feedback and goals are directly tied to the organization's vision and measurable outcomes.
Documenting the insights, agreements, and action plans from performance reviews is crucial for maintaining clarity and ensuring accountability. Accurate records serve as a tangible reference point for both the employee and management, tracking progress and reinforcing commitments made during the review.
Empowering employees to take charge of their own performance management is a key step towards fostering a culture of continuous improvement and engagement. Proactive employees improve their individual performance and strengthen the team's overall effectiveness.
Finally, there is one more guideline — and if you only take away one thing from this article, make it this one.
This may seem obvious, but it must be reiterated. You are talking to people, not corporate drones — and people appreciate when you see them as people. Your first step in providing a comprehensive review should be translating “corporate speak” into human language.
For example, when providing positive feedback, don’t say, “Your ability to identify and capitalize on new market opportunities aligns perfectly with our key result of expanding market reach.” Instead, say something like, “You did a great job, and your ideas helped us reach new markets”.
The latter will stick around for longer since it is something two people might actually say to each other.
There are many ways to conduct performance reviews — it’s all about the company culture and what exactly you want to emphasize during said reviews. That said, there are some examples you might use to make your reviews more effective and valuable.
Positive feedback in performance reviews is essential for reinforcing good practices, acknowledging hard work, and motivating employees to continue their excellent performance. Here, we explore examples of positive feedback, illustrating how to recognize and appreciate an employee's contributions effectively.
When providing positive feedback, it’s important to highlight how the employee’s efforts contributed to the overall success of the team and showcase that they are valued.
Constructive criticism in performance reviews is crucial for identifying areas of improvement, guiding professional development, and ensuring that employees align their performance with organizational goals. This section provides examples of how to deliver negative feedback in a manner that in clear, specific, and focused on growth and development.
When providing negative feedback, it's important to be direct yet empathetic, ensuring that the employee understands the areas that need improvement and feels supported in their journey to address these issues.
Example: "I've noticed that this quarter, your performance didn't quite meet our set OKRs. Your sales figures were 10% below the target, which has impacted the team's overall performance. Let's discuss your challenges and how we can work together to overcome these hurdles for the next quarter."
Example: "While your technical skills are outstanding, there's room for improvement in your project management abilities. I've observed some challenges in meeting project deadlines and managing team coordination effectively. Would you be able to make time for a course in project management next quarter?"
Example: "We value your expertise, but I've noticed some challenges in how you work with the team. You should try to involve them sooner and explain what you want from them better. There have been times when communication breakdowns have led to delays. Let's brainstorm ideas on how you can do that without impacting your own workflow too much."
Example: "I've noticed some inconsistencies in your performance, particularly in meeting the regular deadlines. This is affecting the deadlines set for your team and it’s important to address it now. Do you have too much on your plate? Can we optimize your workload better?."
Example: "In the past few months, there have been several changes in our project scope, and I've noticed you've had difficulty adapting to them. Since it’s likely to happen again, we’ll need to be a bit more flexible this time around. Let's work on strategies to help you manage change more effectively."
Negative feedback, when delivered thoughtfully, can be a powerful tool for personal and professional growth. The key word here is “thoughtfully” — mindlessly dumping negative feedback without providing avenues for improvement is unlikely to work out.
Transforming performance reviews with OKRs brings requires effort but also brings lots of benefits. By creating the right environment, preparing meticulously, guiding the process with OKRs, maintaining diligent documentation, and encouraging personal performance management, organizations can unlock a new level of engagement and performance from their teams.
And while implementing OKRs can be tricky, there are various ways to streamline the process. For example, take a look at the Jira OKR Handbook by Margo Sakova at Oboard: she outlines multiple ways of integrating OKRs directly into Jira. This way you can move beyond the traditional review mechanisms to a more dynamic, interactive, and growth-focused model — and you won’t even have to change anything in your daily workflow.
Remember, at the heart of every performance review is a human being—someone who thrives on genuine recognition, constructive feedback, and the opportunity to grow. By adopting a more personalized, OKR-driven approach, we not only enhance the performance review process but also foster a culture of continuous improvement, collaboration, and mutual respect. This is the future of performance management—personal, precise, and profoundly impactful.
