Mike B. emailed to me with a question and situation. “A few years ago,” he writes, “we revamped our review process to make it more relevant to our industry, and at the same time, the president included himself in the process. Long story short, my fellow managers and I reviewed him as tactfully and honestly as we could, and I am sure it was very eye opening for him. The subject has never come up again, and I am wondering if the review process goes both ways? Are you ever reviewed and what are the rules?”

Part of the fun of starting your own company is that you get to make the rules, make the culture in other words. One rule: no formal performance review system.

Some history. For the first 10 years of my working career, I worked under a system of constant performance reviews. The company had teams of well-meaning HR folks managing, implementing, coaching the review process. It was ingrained into the company.

From my vantage point, I observed a few things.

1. The system got so over inflated, that a new one was needed every 3-4 years.

2. It was never, ever a motivational tool for me. I left each review feeling worse.

3. No matter how rosy it appeared in the pulpit, out in the pews, it typically sucked.

4. It served as a crutch to a better, more common sense way to motivate people.

5. HR professionals can always convince line managers that their review system will help the company.


Overall, I think you would agree that any feedback should do several things: it should be clear as to what is expected after the feedback; it should be timely and given soon after the task; and it should come from someone of respect.

More likely than not, these review systems, have been implemented as part of some new HR program, or worse, because some executive went to a seminar or read a book.

My experience is that IF my original big company—very professional, by the way,–if they could not manage the review system at all effectively, how would any company? It was an incredible de-motivator, in fact. I determined that, if they couldn’t do it effectively with all their top minds dedicated to it full time, what chance would I have in doing it in my developing organization? I thought there was little chance. So, over the years, when some well meaning person comes up with the idea…I basically have said “No.”

My position is that constant feedback, training and involvement is all the review systems we need.

To be more specific to Mike and his boss. I can put myself in the boss’s shoes. Let’s say that Mike comes to me and says “you know, your demands put a lot of stress in my life and I would rather not have such stress. Please stop doing that.” Hmmmm, ok…now what do I do as the boss?

Plus, NO data exists that a 360 degree feedback system implemented at a company has increased retention or decreased grievances? None. (I googled it so it is true.) So, it sounds good but there is no proof it works other than a lot of companies have tried it.

In short, I would assume your manager, Mike, feels like “oh, shxx, what did I get myself into” and is now paying the price for a poor implementation, poor training, poorly coached and ineffective system.

I think the odds are much, much greater for a poor outcome than a good result. For it to be good, the company has to invest incredible amounts to make it happen.

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