Tag Archives: Wall Street Journal

Get Rid of the Performance Review

In our office, it’s nearing the end of the fiscal year and that means performance reviews. The annual performance review was completely redesigned this year. In addition, there has been a huge push from above to make sure many more employees averaged close to a “3” in a 1-5 performance scale. Due to these changes, there was a lot of general confusion about what was expected of each employee for their personal review as well as what to expect at one-on-one reviews with supervisors. These changes ultimately had little to no effect on raise decisions; however while speaking with colleagues, it became obvious  that the cumulative effect of these changes was a destruction of morale and trust that had nothing to do with money.

Destruction of morale is just a small part of the damage a performance review might have on an organization. An article in the Wall Street Journal discusses several reasons why performance reviews, as they are commonly structured, are damaging and ill-advised. A few of these reasons are detailed below:

1. The boss and subordinate have two different mindsets walking into a review. The boss wants to talk about “skill limitations and relationships,” while the subordinate wants to negotiate a raise. At best, this discussion accomplishes nothing but, the author states, it more likely causes ill-will between the two people that has far reaching problems in day-to-day life.

2. There’s a widely held belief that performance determines pay; however raises are generally determined by the yearly budget and the overall economy and marketplace. The performance review often turns into a thinly-veiled justification for the raise the employee will receive, good or bad.

3. Performance reviews are generally set up to appear “objective” but because a single person is reviewing a number of people, the assessment cannot be free of the bias, motives, and feelings of the reviewer at that moment.

4. This same boss who must review a number of people simultaneously might be comparing very different people with sometimes very different job responsibilities but holding them all to the same criteria. For example, a trait that might be seen as an asset in one instance or by one reviewer could be seen as an impediment in a different situation or by a different reviewer. Similarly, two different employees may have two different ways to get a job done. Although both employees might achieve the same outcome, the boss may agree with one methodology and rate one person higher than the other. Unfortunately, this rating has little to do with actual performance.

5. Reviews in general impede personal development. If employees need help, they’re often afraid to speak to their bosses. Employees may feel that by acknowledging that there is a gap in their ability or knowledge, bosses will see that in a negative light and will decrease their potential raises for the upcoming year. Therefore, people do not grow as employees because they fear the retribution from asking questions.

Performance reviews seem to be a necessary evil but do they have to be? Perhaps there are alternatives to the performance review. The writer of the WSJ article focuses on addressing reviews as a team endeavor between the boss and subordinate and not as an adversarial experience in which both players enter the discussion on the defensive. He defines these meetings as “previews” instead of “reviews” in which both the boss and subordinate assess each other and when there is a problem with their teamwork, both members of the team must discuss and work to fix the problem at hand. The hope is that perhaps these changes lead to a more productive and healthy work environment and less game-playing and morale destruction.

What would you suggest reviews be replaced with?

Telling Stories to Persuade People

In the age of big data, we think data is persuasive.  If we can just visualize it,  harness it, and display it in a very detailed presentation, we can convince people with it.  All they need to do is see our numbers, facts and figures, and they will be convinced to follow our lead. Unfortunately, this is where the human mind comes to play – as  neuroscientists have discovered,  most decisions are informed by emotional responses rather than by cold and hard rational thinking.

In his Wall Street Journal article on the topic, “To Persuade People, Tell Them a Story”, Dennis Nishi tells a story of Paul Smith, associate director at P&G. For many days, Mr. Smith prepared to present to P&G CEO, A.G. Lafley. However, on the day of the presentation,  CEO entered the room,  greeted everyone and turned his back to the screen. As Mr. Smith tells his side of the story,

“I felt like maybe I hadn’t done a very good job because he wasn’t looking at my slides like everyone else.It didn’t occur to me until later that he did that because he was more interested in what I had to say than in what my slides looked like.”

To address this issue, presenters need to connect to their audiences on an emotional level.   The above mentioned Paul Smith, now a corporate trainer and an author, has a new book:  “Lead With a Story: A Guide to Crafting Business Narratives That Captivate, Convince, and Inspire”. In it,  he told a story of a mother’s plea to P&G executives about hardships and trade-offs she had to make for her children, and how that story convinced them to lower the price of shortening, underscoring the power of an emotional connection.

In another book mentioned in the article,  “Beyond Bullet Points” by Cliff Atkinson,  Mr. Atkinson tells us to move beyond facts in figures. He suggests  structuring our story in three acts – starting by establishing context,  following with a description of how the main character fights to resolve the conflicts, and finishing with a call to action.

Stories are important to human communication – they started long before PowerPoint presentations,  and we have strong emotional connections to them. So it is important that we do not start our story with an apology or ask a permission to tell it – we should be confident enough for it to stand on its own.

You may read the rest of  “To Persuade People, Tell Them a Story” at http://online.wsj.com/news/articles/SB10001424052702303482504579177651982683162.

Finding or Acting as a Mentor

In my career thus far, I’ve been in mostly start-up environments that lack a formally structured mentor-mentee program, but I’ve still had the opportunity to discover how important it is for growth. My career has exploded when I’ve had the opportunity to work with a mentor and, conversely, grown stagnant when I’ve simply worked for a boss.

This article by Rachel Ensign of the Wall Street Journal takes the point of view of someone looking to climb the corporate ladder, seeking out a mentor. You and I are more somewhere in the middle; many of us have direct reports or are managing teams, but are still in the early stages of careers.

I’ll pose these questions as conversation starters:

  • How many of you have a mentor rather than a boss (it’s possible to have both)?
  • How did you find/develop that relationship?
  • How many of you take an active role in being a mentor to others, past the required exercises of formal reviews?

Any time I interview for a job, “Who would serve as my mentor?” is one of my questions. The worst feeling in a job is just doing the work and feeling no professional progress with no one to talk to about changing the situation (or that person not listening).

A link to the original article: “http://online.wsj.com/news/articles/SB10001424052702303404704577309750220810364