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. Managers spend days filling out stacked evaluation forms on their desks, and employees sigh as they receive scorecards compressing a year of performance onto a single page. These scores then serve as the basis for compensation and promotions. Does this familiar routine actually drive people to work harder and lead organizations in a better direction? Many leaders hesitate before this question because they merely operate the system simply because it exists, rarely stopping to seriously consider whether it actually works. Data answers coldly. According to Gallup surveys, only 2 in 10 employees strongly agree that their performance is managed in a way that motivates them to do outstanding work, and just 14% strongly agree that the performance reviews they receive inspire …