Performance Management: From Annual Reviews to Everyday Leadership

For many organizations, performance management still brings to mind annual reviews, rating scales, and paperwork completed long after it could have made a difference. But effective performance management isn’t an event—it’s a leadership practice.

When done well, performance management becomes a continuous process that alignsexpectations, builds trust, and helps people do their best work.

What Performance Management Really Is

At its core, performance management is about clarity, accountability, and growth. It answers three fundamental questions for every employee:
• What is expected of me?
• How am I doing?
• What support or development do I need to improve or sustain performance?

When these questions are addressed consistently, performance improves naturally—without micromanagement or surprises.

The Problem with “Once-a-Year” Feedback

Traditional performance systems often fail because they are:
• Too infrequent to drive real improvement
• Focused on compliance instead of development
• Reactive rather than proactive
• Emotionally charged due to long gaps in communication

By the time issues surface in an annual review, frustration has already set in—on both sides.

Performance Is Built in the Day-to-Day