MANAGEMENT ARTICLE

What Makes Performance Management Different in Successful Global Companies—Why Adobe and Microsoft Abandoned Annual Reviews and the Truth About Performance Management Through Data

Annual evaluations can no longer drive people. Every year-end, countless organizations worldwide repeat the same routine where managers spend days filling out review forms, and employees sigh over scorecards that compress a year of performance onto a single page, which then serve as the basis for compensation and promotions. Do these familiar procedures actually drive people to work harder and lead organizations in a better direction? Many leaders hesitate before this question, as they merely operate existing systems without seriously considering whether they truly work.