Most formal evaluation processes actually hurt future performance, and this is particularly true for top performers. Therefore, it is critical to maximize the value of the annual Performance Review. Here are six keys to keep in mind for making an evaluation a worthwhile experience:

1. Take It Seriously
2. No Surprises
3. Be Consistent
4. Clarify Expectations
5. Provide Rationale

TAKE IT SERIOUSLY

This is the biggest problem of all. Many supervisors look at formal evaluations as just one more thing they have to do and consequently try to rush through it as quickly as possible. Another phenomenon is the "pass the buck" mentality. The supervisor has the person being evaluated write their own evaluation and then the supervisor signs it. What a joke and a waste of time. Top performers want effective evaluations so they can use the input to improve future results. They go into these meetings with a thirst to learn and to grow. They want to know where they can improve and how they can improve. When their supervisor doesn't take the process seriously, then the individual feels that they are not being taken seriously. One woman told me that when she anxiously sat down to hear her supervisor's comments she was shocked to find out that he wasn't listening t her at all. In the middle of the conversation, he turned to his radio and said, "Let me turn this up. I really like this song."

Combined with other examples of a lackadaisical attitude from their organization, this joke of an evaluation can be a reason for the top performer to look around at other opportunities. If you really want to show your employees how seriously you take them, then take the evaluation process seriously. It is one of the few times when a manager can make an immediate impact in improving performance (or ruining performance.)

NO SURPRISES

Having provided more than four hundred Executive Coaching sessions, one thing that stands out for me is the number of times an individual will be genuinely surprised by the rating or the comments they receive in their formal evaluation. How can this be? If the manager and the subordinate have been in communication for an entire year and expectations were clearly outlined at the beginning and reviewed periodically throughout the year, how can the person be surprised by the rating they receive? The answer in most cases is that they have had very little conversation during the course of the year as to what the subordinate is doing well, is doing poorly and how they can continue to improve. Consequently, the formal review is the very first time that year the employee is getting any feedback on their work. Formal reviews should merely be the summation of a year-long series of conversations on how the individual can continually become more effective. This is what top performers hunger for. They don't want to be told what to do. They want their autonomy. But they also want to learn and grow. A good supervisor also serves as a good mentor.

BE CONSISTENT

Another classic example of a poor review is when the supervisor says, "You have done an outstanding job for us this year. You work was superlative, and we feel lucky that you work for us," and then the written review says, "Satisfactory Performer." The employee then feels that somewhere somebody is telling a lie. How can they be told their superlative and yet be given a "Satisfactory" rating? One reason is that bonuses are tied to performance reviews and the boss can't afford to give out a big bonus. Fine. Then tell the employee that you don't have the money to give, but don't lie to them. Another reason this happens is that many managers are afraid of controversy. Therefore, they say the person is a great performer even though they really don't believe it. In that case, be honest and say what you feel. Communicate with candor, and most people will appreciate it. If the person truly doesn't want to hear it, then they will move on and work somewhere else. In that case, you will probably both be better off.

CLARIFY EXPECATIONS

One way to minimize surprises is to clarify expectations at the beginning of the year as to what the different ratings mean. For the sake of argument, let's say you have a five point scale: unacceptable, satisfactory, good, excellent and outstanding. At the beginning explain what each one means. Here are some suggestions, but I encourage you to clarify this in your own words.

Poor	Did not meet the minimum expectations of your role. If this continues, termination could result.
Satisfactory	Met the minimum expectations of your role.
Good	Met all of the expectations of your role.
Execellent	Met all of the expectations of your role and mentored other individuals to enhance their effectiveness within the organization.
Outstanding	Met all of the expectations of your role, mentored other individuals and played a key role in developing processes that are being used company-wide to improve our overall performance. You are ready for the next level.

Whatever your expectations are for each rating, make them clear early on. Few things are more frustrating to a top performer than to have their rating be based on something vague or how their manager feels about them as a person. Performance reviews should be based on performance, not feelings.

PROVIDE RATIONALE

In the end, be sure to provide rationale for your evaluation. It is extremely frustrating for a top performer to receive a certain rating and then not understand why they received it. One of my most frustrating moments as a high school teacher was receiving a certain evaluation from the principal. He gave me a "Satisfactory" rating after he wrote "Excellent" all over his comments. I certainly was not satisfied with that evaluation so I asked him what I needed to do to be considered an excellent teacher. He said, "You have to go above and beyond. You have to have a snake around your neck and stand on the desk and teach from there." At that moment I basically lost a lot of respect for him as a leader. He had no idea what he wanted from his teachers, but he didn't hesitate in telling me that I was average.

Don't manage people like that principal. Know WHY you are giving a certain evaluation. It has to be clear otherwise there will be no learning by the other person.

The whole purpose in evaluating performance is to enhance future results. A performance review is a golden opportunity to make an impact if you treat it with respect. Think of it as a business driver and I suspect you will take it more seriously.

Dan Coughlin is a professional speaker, executive coach and consultant who specializes in enhanced individual effectiveness.

About Dan Coughlin

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Dan Coughlin teaches practical ideas on how to improve business performance. He is a business keynote speaker, management consultant, executive coach, and author of four books on leadership, sales, branding, and innovation. His books including Accelerate, Corporate Catalysts, The Management 500, and Find a Way to Win. His clients include GE Capital, McDonald's, Coca-Cola, Marriott, Boeing, Abbott, Toyota, Subway, Kiewit, Prudential, Denny's, and the St. Louis Cardinals.

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