Author: Srikant Chellappa

Performance reviews are meant to inspire growth, not induce yawns. Yet, many employees leave these evaluations feeling like they’ve been handed a script written for someone else. Sound familiar? Generic feedback doesn’t just fail to motivate—it misses the mark entirely. The good news? 

Personalizing performance review phrases can turn these meetings into meaningful milestones. In this blog, we’ll explore how tailored feedback can transform the mundane into a powerful tool for engagement and development. Trust us—it’s more impactful (and yes, exciting!) than you might think.

The Pitfalls of Generic Performance Reviews

So to start, have you ever found yourself getting feedback and wondering if the person giving the feedback even knows what you do here? If yes, then you have come across the infamous standard performance review.

Why Generic Doesn’t Cut It

Imagine trying on a one-size-fits-all hat. Sure, it might technically fit, but it’s unlikely to look good, and it definitely won’t feel comfortable. That’s exactly what generic performance reviews are like. Using vague phrases like “meets expectations” or “needs improvement” does little to clarify what’s working and what’s not. Instead, these cookie-cutter phrases breed confusion, leaving employees feeling undervalued and disconnected from their work.

The Employee’s Perspective

Think of the hours spent tackling complex tasks, navigating challenges, and driving results—only to receive a review that says, “Good job this year.” It’s like running a marathon and being handed a participation ribbon. Employees crave meaningful feedback, not just praise. They want to understand how their specific contributions have made a difference.

The Manager’s Blind Spot

Generic feedback isn’t just a disservice to employees—it’s a red flag for managers. It signals a lack of engagement with your team’s work. Worse, it’s a missed opportunity to guide, inspire, and help your team grow. Personalized feedback isn’t just nice to have; it’s essential for building a stronger, more motivated workforce.

Why Personalization Matters

So, what is the need to customize your phrases regarding job knowledge performance review? Because personalized feedback is the magic ingredient that can take teams and organizations to the next level.

1. Boosting Morale and Engagement

Providing personalized feedback is a way to show your employees that they are noticed and that their unique contributions are valued too. It is like saying, “I see you… and I see what you bring to the table” This form of recognition can lift the spirits, create a sense of fulfillment, and increase engagement.

2. Driving Performance Improvement

Specific feedback gives direction on what employees are doing and what not, and where the spotlight should be focused. It’s real, significant, and relates to their daily task. This makes employees put in more hard work and that enhances performance as well.

3. Fostering Professional Growth

When feedback is personalized, it can match up with an employee’s career aspirations. Such alignment motivates continuous learning and development, adding value to both the person and the organization.

Understanding Job Knowledge Performance Review Phrases

Now, let’s get to the point. So what do we even mean when we say “job knowledge performance review phrases“?

Job knowledge performance review phrases are specific comments that show an employee’s knowledge, skills, abilities, and expertise of their job. They demonstrate an employee’s knowledge of their job and how well they utilize that knowledge.

1. The Power of Specificity

Specificity transforms vague feedback into actionable insights. Consider the difference:

• Generic: “You need to improve your skills.”
• Specific: “Developing your proficiency with data analysis tools will enhance your ability to interpret market trends.”

The first is uninspired and vague; the second offers clear guidance and a roadmap for growth. Specific feedback empowers employees by providing clarity and actionable next steps.

2. Aligning with Organizational Goals

Personalized phrases do more than highlight individual performance—they connect an employee’s contributions to the organization’s bigger picture. When employees see how their work aligns with company goals, it fosters a sense of purpose, belonging, and motivation to excel. This alignment creates a win-win scenario for both the individual and the organization.

Techniques for Personalizing Feedback

You might be thinking “So what’s the next level?” Let us delve into a few robust methods that can turn your job knowledge performance review phrases to hit the bull’s eye. Personalizing feedback is not just another managerial task — it is an art that will motivate, inspire, and empower your team more than ever.

1. Know Your Employee

“Know your employees”—it might sound cliché, but meaningful feedback starts with truly understanding the people on your team. Think of it as building a bridge between where they are now and where they aspire to be.

• Conduct Regular Check-ins: Don’t let feedback be an annual event. Schedule recurring 1-on-1 meetings to stay updated on their projects, challenges, and achievements. These regular interactions not only help you stay informed but also show employees that you value their contributions and care about their growth.
• Observe Their Work: Get a glimpse of how they do their job and collaborate with others. Are they team players or do they prefer to work alone? Observing these subtleties can enable you to customize your feedback according to their approach to work.
• Ask Open-ended Questions: Ask them to speak out their minds and dreams. Thus, questions like “What are the most enjoyable aspects of your job?” or “What skills do you need to improve in?” might draw out insights that might not emerge otherwise.

2. Use Concrete Examples

Making generic statements is like firing an arrow in the dark — it never hits the spot. Specific, concrete examples facilitate tangible, actionable feedback.

• Highlight Achievements: Instead of a vague “Good job,” specify what they did well. For example, “Your redesign of the customer on boarding process reduced our churn rate by 15% last quarter. That’s a significant improvement that has positively impacted our revenue.”
• Address Areas for Improvement: Tackle challenges with clarity and support. Say, “I noticed delays in the last project were due to communication gaps. Let’s work on establishing clearer channels to keep everyone aligned and on schedule.”

3. Align with Goals

Goals create a context for feedback, which makes it easier to digest, remember, and leverage, thus making feedback more motivating and relevant.

• Personal Goals: Link their ambitions with opportunities. “Your interest in leadership roles aligns perfectly with our upcoming need for team leads. Let’s discuss how we can prepare you for that position.”
• Company Goals: Show how their work contributes to the greater good. “Your specific skills in renewable energy technologies are critical to our pursuit of a sustainability leader. Your efforts are nudging us closer to that goal.”

4. Be Timely

Good feedback is all about timing. Address praise or concerns directly, do not let them sit on a shelf.

• Immediate Recognition: Celebrate successes as they happen. A quick acknowledgment like, “Your presentation today was engaging and informative. Great work!” can boost confidence and reinforce positive behavior.
• Prompt Guidance: Nip issues in the bud before they escalate. “I noticed you seemed overwhelmed during the team meeting. Is there anything we can adjust to help you manage the workload?”

5. Encourage Two-way Communication

Feedback should not be a monologue but instead, a dialogue where all parties can give themselves and hear and be heard, both valued and heard.

• Ask for Input: Show that you value their perspective. “How do you feel about your progress on the new software implementation? Are there any resources you think could help?”
• Invite Questions: Make it clear that you’re open to discussion. “Do you have any concerns about the feedback I’ve given or ideas on how we can support your growth?”

Common Mistakes to Avoid

It’s all too easy to fall into well-intentioned clumsiness when giving thoughtful feedback. After all, we’re only human, and communicating is a damn complex craft. No worries! The first step in self-development is awareness of the problem – to make sure you don’t fall into common pitfalls. And this is what we are going to go through in this context so that you can surf the process of giving back like a pro. Here are some common pitfalls and how to sidestep them.

1. Overgeneralization

Has someone ever said to you, “You always miss deadlines?” For some, it’s a personal attack.

• Avoid Absolute Language: Absolute Language: Words like “always” and “never” is seldom ever the case and make people defensive.
  • Don’t Say: “You always deliver late.”
  • Instead Say: “The last two projects were delayed due to unforeseen challenges. Let’s identify ways to manage these in the future.”

When you focus on specific situations instead of generalizations, you create an opportunity for constructive dialogue and problem-solving.

2. Using Jargon

Feedback littered with industry jargon or corporate buzzwords becomes unclear and also out of reach for everyone.

• Keep Language Clear and Accessible: The goal is to ensure the employee understands the feedback without needing a dictionary.
  • Avoid: “Your synergistic approach to ideation lacks scalability.”
  • Use: “Your collaborative brainstorming sessions are creative, but let’s focus on ideas we can implement effectively.”

Using clear language makes your feedback actionable, and it shows you respect the employee’s time and intelligence.

3. Being Overly Negative

Concentrating on only negatives could demoralize staff and affect their productivity.

• Balance is Key: While it’s important to address areas for improvement, acknowledging positives boosts morale and receptiveness.
  • Don’t Focus Solely on Negatives: “Your reports are full of errors.”
  • Incorporate Positives: “You’ve provided some valuable insights in your reports. Let’s work on refining the details to ensure accuracy.”

This approach promotes growth without the loss in confidence.

4. Ignoring Cultural Differences

Cultural sensitivities play a huge role in how feedback is delivered and received in our diverse workplaces.

• Be Mindful of Cultural Sensitivities: Be aware that different cultures may have diverse communication preferences and interpretations.
  • Understand Context: “I know direct feedback is appreciated in some contexts, but I want to ensure I’m respectful of your preferences. How do you prefer to receive feedback?”
  • Tailor Communication Style: “I’ve noticed that you respond well to written feedback. Would you like me to provide a summary after our meetings?”

Identifying cultural differences and adjusting accordingly establishes an inclusive atmosphere of everyone being made to feel special.

5. Neglecting Follow-up

You cannot just plant the seed and forget to water it, providing a piece of feedback without a follow up is pointless—nothing will happen.

• Set Action Plans: Collaboratively outline steps for improvement.
  • Example: “Let’s create a timeline for developing your presentation skills, including attending a workshop and practicing with the team.”
• Schedule Check-ins: Regularly monitor progress and offer support.
  • Example: “I’ll check in with you next week to see how you’re finding the new project management tool.”

When you follow-up, it shows that you are invested in their growth and helps them stay accountable.

The Role of Continuous Feedback

Annual performance reviews should not be some high-stress event that employees start dreading months in advance. Rather shifting towards continuous feedback mechanism will change the way your team works and collaborates.

Regular Check-ins

Frequent meetings keep communication lines open and help build stronger relationships.

• Monthly or Bi-weekly Meetings: Use these sessions to discuss current projects, celebrate successes, and address any hurdles.
  • Tip: Keep these meetings informal to encourage openness.
• Real-time Adjustments: Address issues promptly to prevent them from escalating.
  • Example: “I noticed the client meeting didn’t go as planned today. Let’s debrief while it’s fresh.”

Regular check-ins make feedbacks timely and relevant, fostering continuous improvement.

Encouraging Open Dialogue

Provide space for individuals to voice out to foster effective collaboration and innovation through:

• Active Listening: Display interest by giving full attention and asking clarifying questions while summarizing their points.
  • Example: “You feel overwhelmed by your workload, do not you? Let’s find a way to balance tasks.”
• Transparency: Be honest about company goals, challenges, and how they impact the team.
  • Example: “Our goal this quarter is to increase sales by 15%. Here’s how your role contributes to that objective.”

Expectations of an open dialogue builds trust on the employee side and that particular employee leads to add value to the company infrastructure.

Leveraging Technology

Technology can improve the feedback process to be more efficient and effective in the digital age.

• Feedback Platforms: Implement software that allows for instant feedback and recognition.
  • Example: Tools like Slack or Microsoft Teams can facilitate quick kudos or constructive comments.
• Data Analytics: Use performance metrics to inform discussions.
  • Example: “According to our CRM data, your customer satisfaction ratings have increased by 10%. Great job!”

Technology can fill this gap, particularly for remote or widespread teams, to keep them all connected.

Crafting Effective Job Knowledge Performance Review Phrases

Having dealt with the why, let’s move on to the how. Writing good job knowledge performance review phrases is an art and a science. Just like a chef needs the right ingredients (words) and the perfect recipe (structure) to create a feedback dish tailored to be nourishing and delicious. All right then, let us put on our aprons and start serving some powerful statements!

1. Be Specific and Relevant

Have you ever received some roundabout compliment that was so vague it was hard to tell if it was even directed at you? Generic feedback is like a fortune cookie message – it could apply to anyone. You need to be more specific to make it a meaningful feedback.

Tie Feedback Directly to Actions and Outcomes: Share concrete examples in which employee actions resulted in tangible outcomes. This does two things: it recognizes their work and it reinforces the behaviours you want them to replicate more of.

Example: “Your initiative to automate the reporting process reduced manual errors by 20% last quarter, saving the team valuable time and improving overall efficiency.”

Why It Matters: Detailed feedback helps employees understand what exactly was successful (or unsuccessful) so that they can replicate the successes and work on the issues. Well it’s like providing a roadmap to excellence.

2. Balance Positives with Areas for Improvement

We aren’t perfect, and that’s totally okay. Maintaining this balance will not only allow employees to feel appreciated, but also recognize areas that can be improved.

Provide a Holistic View: Acknowledge strengths and address weaknesses in the same conversation to paint a complete picture of performance.

• • • Strengths: “Your exceptional customer service skills have led to positive feedback from key clients, enhancing our company’s reputation.”
    • Improvements: “Let’s work on developing your negotiation skills to close deals more effectively, which will contribute to meeting our quarterly sales targets.”

Why It Matters: Employees are driven by a mixture of praise and constructive criticism. It shows that you value what they bring to the table while also trying to help them grow.

3. Use Action-Oriented Language

Do not foolishly underestimate the power of language—they can prompt actions or halt them dead in their tracks. Using verbal actions sends the employees to take initiatives towards improvement.

Encourage Growth and Development: Frame your feedback in a way that motivates employees to act.

• • • Encouraging Words: “Consider taking a course on advanced analytics to enhance your data interpretation skills, which will prepare you for more complex projects.”
    • Support Offers: “I’m available to help you strategize on managing project deadlines more efficiently. Let’s set up a meeting to discuss time management techniques.”

Why It Matters: This turns your feedback into a help rather than a complaint it’s not just pointing out anissue, but showing a way to overcome it, and converting obstacles into road-blocks.

4. Avoid Bias and Subjectivity

Feedback should be a reality mirror, as opposed to a fun-house mirror, which gives a distorted view of things.

Stick to Observable Behaviours and Results: Base your feedback on facts, not feelings or assumptions.

• • • Avoid: “I feel like you’re not committed.”
    • Use: “I’ve noticed you’ve missed three deadlines this quarter. Let’s discuss what’s impacting your schedule and how we can address it.”

Why It Matters: Trust is earned through unbiased feedback. It is crucial for employee acceptance and willingness to improve. It shows that your assessments are impartial and founded upon quantifiable evidence.

5. Incorporate Employee’s Career Goals

Remember, your employees are people, not drones; they have goals and hopes. It can be very motivating to align your feedback with their career goals.

Align Feedback with Their Aspirations: Show that you’re invested in their personal growth, not just the company’s bottom line.

Example: “Your interest in project management aligns with our upcoming initiatives. Let’s explore opportunities for you to lead a project team to develop those skills.”

• Why It Matters: If your team recognizes that there is a ladder to climb both personally and professionally, they will remain invested and loyal to the organization.

Conclusion

And there you have it: a guide, for turning your run-of-the-mill performance reviews into engines for growth and engagement. Use job knowledge performance review phrases for your team to help them reach their full potential and propel your organization forward.

So, aren’t you going to want to change your performance review process? So go ahead, make someone’s day — you have now got the tools to do it!

FAQs

How often should I provide personalized feedback to my employees?

Regularly! While annual reviews are common, incorporating monthly or quarterly check-ins can make feedback more timely and effective. Continuous feedback helps address issues promptly and keeps employees engaged.

What if I don’t have enough time to personalize each review?

It might seem time-consuming, but the benefits outweigh the costs. Personalized feedback can lead to improved performance and job satisfaction, which ultimately saves time by reducing turnover and increasing productivity.

How can I ensure my feedback is unbiased?

Focus on observable behaviour and results rather than personal characteristics. Using objective data and specific examples can help minimize bias. Training on unconscious bias can also be beneficial.

Can I use a template for personalized feedback?

Templates can be a helpful starting point, but they shouldn’t replace genuine, individualized comments. Customize templates by adding specific details about the employee’s performance and contributions.

How do I handle negative feedback without demotivating the employee?

Balance is key. Start by acknowledging their strengths and contributions before discussing areas for improvement. Frame negative feedback as opportunities for growth, and offer support to help them develop.

1. Lack of Proper Onboarding and Training

Let’s be real: even the most intuitive OKR platforms can feel like navigating a maze without a map if your team hasn’t been trained. Skipping onboarding might feel like saving time, but in reality, it’s setting the stage for confusion, misalignment, and a whole lot of “What’s going on here?”

Think of it like trying to assemble IKEA furniture without glancing at the manual. Unless you’ve got a hidden talent for Swedish engineering, it’s likely to end in frustration. Similarly, rushing your team into an OKR tool without adequate training almost guarantees missteps and missed targets.

Consider your team—they’re already juggling multiple priorities. Throwing in a new tool without guidance is like adding a hot potato to the mix. The result? Frustration, delays, and a few too many exasperated sighs.

Solution: Schedule an initial call with the OKR software’s support team to walk through all the features in detail. This hands-on session can clarify key functionalities and help your team understand how to best leverage the tool for their needs.

Follow up with an ongoing training plan that includes bite-sized tutorials or “how-to” guides for quick reference. Additionally, consider appointing an “OKR champion” within your team—someone who becomes the go-to resource for questions and support.

This structured approach will ease the learning curve and boost confidence in using the software effectively.

Case Study: Google’s Early OKR Journey

Even Google, the poster child for successful OKR implementation, didn’t get it right from day one. In the early days, Googlers struggled with setting ambitious yet attainable OKRs. Many teams set objectives that were either too conservative or unrealistically ambitious.

Recognizing the issue, Google invested heavily in training and workshops. They developed internal resources and encouraged a culture of continuous learning around OKRs. Over time, with leadership support and iterative learning, they refined their approach. Today, Google’s OKR system is a benchmark for organizations worldwide.

2. Poor Alignment with Company Goals

Imagine trying to row a boat while everyone paddles in different directions—not exactly the recipe for making progress. That’s why having OKRs aligned across your company is essential; without it, you’re just spinning in circles, burning energy with little forward movement.

Each team’s objectives should ultimately contribute to the company’s mission. If they don’t, the software becomes digital shelfware, packed with scattered goals that don’t drive real progress. This misalignment often occurs when each department operates in its own OKR bubble, forgetting that OKRs are meant to serve the bigger picture.

Think of it like the childhood game of “Telephone.” By the time the original message reaches the last person, it’s completely different. That’s what happens when OKRs aren’t set with proper alignment—teams lose sight of the unified goal, and the company mission gets lost in translation.

Bridging the Gap

You can prevent that by setting goals for the company as a whole, make sure they are defined clearly and from top to bottom. And then, promote the teams to make OKRs aligned with these goals. Utilize your OKR software to show these linkages. Everyone sees that the work they are doing is contributing to a larger mission, this alone significantly increases motivation and accountability.

3. Overcomplicating the OKR Process

Ever been tempted to add just “one more” key result? Before you know it, you’re dealing with a web of objectives that even Sherlock Holmes might struggle to untangle.

The OKR system is designed for simplicity—a clear guide, not a complex maze. Overcomplicating it only confuses your team and dilutes their focus. Here, less truly is more.

The Paradox of Choice

In psychology, there’s a concept known as the paradox of choice: when offered too many options, people often experience anxiety and decision paralysis. The same applies to OKRs. When employees are faced with an extensive list of objectives and key results, it’s difficult to know where to start. Prioritization becomes a struggle, and critical tasks risk falling through the cracks.

Streamlining the Process

Keep OKRs focused and manageable. Set a limited number of high-impact objectives, and prioritize only the most essential key results for each.

Use your OKR software to visualize this simplicity, helping employees see a clear path forward without feeling overwhelmed. By maintaining focus, your team can concentrate on what matters most, driving meaningful progress without unnecessary complexity.

4. Lack of Executive Buy-In

Imagine trying to push a boulder up a hill. That’s what implementing OKRs feels like without strong executive support. When leadership isn’t fully committed, the initiative is likely to stall or fail before it even starts—like playing chess without your queen.

Leaders set the tone, and their buy-in can make all the difference. When executives are engaged in the OKR process, it signals to the entire organization that OKRs are not just a “management directive” but a genuine strategy to drive value.

Without this backing, employees may see OKRs as yet another box-ticking exercise, something they complete because “management said so,” rather than as a powerful tool to achieve real impact.

Case Study: Sears’ Misaligned Objectives

Sears, once a retail giant, faced significant challenges partly due to misaligned objectives and a lack of cohesive leadership. The company’s aggressive focus on individual performance metrics led to internal competition rather than collaboration. Departments were more interested in outperforming each other than in contributing to the company’s overall success.

While not an OKR tool issue per se, it highlights the importance of executive alignment and the dangers of neglecting company-wide cohesion. Had leadership fostered a more unified approach, leveraging tools like OKRs effectively, the story might have been different.

5. Inadequate Customization and Flexibility

Not all OKR tools are created equal. If your software doesn’t align with your company’s specific needs and constraints, it’s like trying to fit a square peg into a round hole—uncomfortable and inefficient, like a one-size-fits-all hat that doesn’t quite fit.

Your team might need certain integrations, custom fields, or specific reporting capabilities. When the software is too rigid, it becomes a roadblock instead of a roadmap, dictating your processes rather than supporting them.

Finding the Right Fit

Consider your company’s size, industry, and unique requirements when selecting an OKR tool. A startup may benefit from a lean, agile platform, while an enterprise might require a more robust tool with advanced security features.

Take time to involve team members from different levels and departments in evaluating the software’s flexibility. Don’t settle for a tool that falls short; an ideal OKR solution should feel like an extension of your team, not an obstacle in your path.

6. Not Integrating OKR Software with Existing Tools

We live in an interconnected world where apps seamlessly “talk” to each other. When your OKR software functions in isolation, you’re missing out on powerful synergies. It’s like assembling the Avengers without including Iron Man—still strong, but not reaching full potential.

Integrating OKR software with tools like Slack, Jira, or collaboration platforms such as Engagedly can enhance workflow and boost visibility. When your OKR platform connects with other apps, it becomes part of your team’s daily operations instead of just another isolated tool that risks being forgotten.

Automation is Your Friend

Integrate your OKR software with other tools to automate updates, send timely reminders, and reduce manual data entry. This not only speeds up processes but also ensures everyone has access to the latest information, enhancing transparency and efficiency across the board. Embracing these integrations can make OKRs a seamless part of the daily workflow, empowering your team to stay aligned and on track.

7. Failing to Track and Adjust OKRs Regularly

“Set it and forget it” might work for slow cookers, but it’s a recipe for failure with OKRs. Objectives and key results need regular attention, like a garden that requires ongoing care. Without regular check-ins, those goals can quickly lose relevance or wither away.

Are you holding weekly or monthly OKR reviews? Without these touchpoints, it’s easy to lose sight of the original goals. The business world is volatile, and OKRs should be dynamic, evolving with new circumstances. Relying on a static approach often leads to stagnant results.

Embrace the Agile Mindset

Adopt an agile mindset by adjusting OKRs as the context changes. New competitors may enter the market, or global events could shift priorities. Regular OKR reviews keep your objectives current, ensuring they remain challenging yet achievable. By revisiting and refining OKRs, your team stays agile, responsive, and consistently aligned with the broader mission.

Actionable Steps to Revive Your OKR Strategy

Invest in Training: Time and resources need to be distributed for an inclusive onboarding. Make tutorials, bring in workshops, and lots of questions. Appoint OKR ambassadors in your teams for continued support.

Ensure Alignment: Create alignment by regularly communicating company goals. Leverage your OKR tool for cascading goals to ensure each team understands their role in the larger objective. Visual mind mapping tools in your platform can help denote these connections.

Keep it simple: Less is more, limit the number of Objectives and Key Results. Prioritize high-impact efforts. As a general rule, there should be 3 to 5 objectives with each objective having between 3 and 5 key results. This helps to keep things manageable and targeted.

Secure Executive Buy-In: Get leaders to write personal OKRs and discuss them in the open. They have contagious involvement. Maybe even start a leadership workshop to highlight the benefits and work out any concerns.

Select Agile OKR Software: Assess your existing tools. Does it meet your needs? If not, switch it to a more adaptable solution. Look for platforms that provide customization features and scalability options.

Systems Integration: Enable your software to mingle with other tools, making everything seamless while ensuring higher adoption rates. Today, many platforms have APIs or integrations. Make the most of them.

Set Regular Check-Ins: Have a mechanism for analyzing OKRs regularly. Adapt any changing strategy Avoid meeting overload, try to embed the conversations in the already planned meetings

Okay, Let’s Summarize!

Implementing OKRs can transform your business in powerful ways—but success requires more than just the right software. Just like baking a cake, having quality ingredients (software) is essential, but following the recipe and process (implementation) makes all the difference.

Consider companies like Google, who nailed their OKR process, and Sears, who didn’t quite make it. Their journeys show us that common pitfalls can be avoided with the right approach. Your OKR software can either be a stumbling block or the cornerstone of your company’s success.

Ready to take control? The ball is in your court—or should I say, in your OKR tool settings?

FAQs

Q: What if my team is resistant to adopting OKR software?

A: Change can be daunting. Involve your team in the selection process of the platform. When they feel ownership, they’re more likely to engage. Provide clear explanations of the benefits and how it will make their work more meaningful.

Q: How do I measure if our OKR software is effective?

A: Look beyond the software. Are you meeting your objectives? Is there improved alignment and communication? The software is a means to an end, not the end itself. Utilize the reporting features to gain insights, but always pair data with qualitative feedback from your team.

Q: Can I customize OKRs for different departments?

A: Absolutely! While the overarching goals should align with the company’s mission, departments can have tailored OKRs that address their specific functions. Just ensure there’s a clear line connecting them to the main objectives.

The field of HR has come a long way from the early days of the 1900’s. Back then, HR was better known by the term, ‘industrial and labor relations’. Now, it’s a ubiquitous part of every organization and is known by the more prosaic term, ‘HR Department’.

The HR department was initially only tasked to deal with administrative issues such as payroll and benefits administration. Today, with the way the work landscape has changed, the scope of what an HR department can do has broadened as well.

HR administrators today drive a number of functions such as:

• Talent management
• Organizational development
• Employee productivity
• Succession planning
• Employee training and onboarding
• Performance management

Since most of these functions have overlapping areas, the HR department of an organization may choose to have a number of HR administrators who are solely responsible for one function.

While it is clear that each of these functions plays an important role in an organization, there is no function of HR that is as hotly debated as the performance management function. The pendulum swings wildly when it comes to deciding whether performance management should play a big role in an organization or not.

Why Current Performance Management Systems Are Failing

If there’s one thing that everybody seems to agree upon, it is this, that the performance management process needs an overhaul. But we just can’t seem to decide if we should do away with it or if we should dismantle existing performance management processes and rebuild them, preferably in a way that better reflects the dynamic of workplaces today.

In short, a lot of the performance management practices that are currently in use were developed a few decades ago. What worked then definitely does not work now.

But to put it so brusquely would actually undersell the fact that there are myriad reasons why performance management is the bitter pill that nobody in an organization likes, and yet everybody is forced to swallow.

Time and Money

CEB Gartner took the initiative of calculating how much annual performance reviews cost an organization. An organization that is 10,000 employees strong spends around $35 million a year on performance reviews.

Using this as a benchmark, even an organization that is 500 employees strong ends up spending close to $25,000 annually on performance management. Mind you, this is a rough estimate.

And it might seem like it’s not a lot of money. But when you factor in money and the time spent by both managers and employees on an activity they don’t believe in, this is where the cost hurts organizations.

Even if one were to keep aside the cost of performance reviews and write it off as a necessary organizational experience, it does not change the fact that managers have to spend an average of two working days per employee preparing for their performance review. Two working days might still seem acceptable in an organization that is small.

But what about enterprise-class organizations like Deloitte, who found out that annually, they spent 1.8 million hours talking about performance reviews alone? For context, Deloitte is an organization that 65000+ employees strong. Time and money are some of the most valuable assets in an organization. Once gone, they cannot be brought back.

The Results Are Inaccurate

Though the drudgery of performance management is one big reason why managers and employees abhor it, a bigger and more prevailing reason as to why they dislike the process is because they believe that the end results are inaccurate.

One of the reasons why employees believe that most review systems do not establish clear performance goals, define realistic and fair performance standards, or generate honest feedback (Watson Wyatt Worldwide(2004)).

Furthermore, it can be argued that performance management systems are ineffective because overwhelmingly, the focus tends to be more on administrative processes (such as documentation, ratings discussions etc) than on training both employees and managers as to how they should effectively participate in a performance manage process. (Pulakos and O’Leary (2011))

Also, there is the issue of bias at play. If one were to keep aside bias informed by prejudice which accounts for gender, sexuality, race, etc, one of the most common biases that managers tend to fall prey to is the Leniency Bias. Afraid of damaging or hurting the feelings of their direct reports or even worse, running a work relationship, managers tend to err on the side of caution and give ratings or reviews that do not necessarily reflect an employee’s performance.

Additionally, it is also possible for managers to fall prey to the Recency Bias, especially if one is to take into account the traditional model of performance management. Recency bias ensures that no matter how an employee performs, a manager can only remember their latest accomplishments or lack of it when it comes to reviewing performance.

If it were only managers and employees who believed that the review process produced inaccurate results, it would still be possible to suggest alternate viewpoints as to why they believed so. However, when 90% of HR professionals themselves have no faith in the review process[1], it just goes to show how flawed the entire process is.

Flatter Organizations, Reduced Hierarchy

Since the time of HR’s inception as a legitimate department in an organization, a lot has also changed with respect to managing people. Early on, organizations were defined by hierarchy. Levels of hierarchy ensured a manager had to concern himself with only two or three, or at the most four direct reports.

However, in recent times, organizations have grown flatter. And incidentally, a manager’s span of control increased as well. Nowadays, it’s not uncommon for managers to have at least ten or more employees reporting to them.

But the effort to do away with hierarchy has ensured that now more so than ever, managers are burdened when it comes to performance management and feedback. With the traditional method of performance management, it is not possible for managers to give fair and just reviews or even spend an adequate amount of time helping employees grow and develop and additionally share feedback on a consistent and ongoing basis.

When it comes to performance management, not considering the number of direct reports a manager has, ensures that not only are managers pressed for time when it comes to the review process, but also employees lose faith in the review process because it produces results they weren’t expecting.

Performance Management Is a High Stakes

Game In most organizations, performance management is linked to compensation. So what happens when the performance management process gets the short shrift? Compensation suffers.

Managers are expected to make compensation decisions on the fly and are not able to give compensation the attention and time it requires. As a result, employees who fall with a certain ranking or rating scale get one chunk of compensation, and employees who fall on the other end of the scale get nothing at all.

A hasty performance management process, and by extension compensation process does not account for outliers such as the fact the employee took on a new challenge this year and was able to successfully transition from one job role to the other. Nor does it acknowledge the fact an employee is highly skilled but is a poor fit in his current department.

Does Not Look Forward

The traditional performance management approach has always looked into the past, as opposed to the future. And that is why, it so often fails at pleasing managers, employees, and HR administrators. The past cannot be changed, and yet an employee’s performance is judged on the basis of what she has done.

A manager has to remember an employee’s work throughout the year, keep track of what they excelled at, and what they struggled with and the HR administrator has to keep track of how both the manager and the employee have survived the year.

Performance management’s biggest stumbling block is its inability to let go of the past. Holding onto methods of the past, such as rating scales, stacked rankings, manual performance reviews, annual reviews, etc all combine to drag down the efficacy of the performance management process.

The Impact of a Poorly Structured Performance Management Process

Much is written about the ills that plague performance management systems. The real question we need to ask is, what are the after-effects of a poorly structured PM process? Who wins and who loses? Poorly structured performance management processes are a breeding ground for disengagement.

Nothing makes an employee check out faster than a review process that judges them unfairly. When high performers feel like they aren’t getting their due, they start withdrawing and doing only the bare minimum. Eventually, they move on to greener pastures. A poorly structured process also affects managers.

If the annual performance reviews increase their burden, and cause more stress than necessary, managers too begin to not care about the review process. They disengage from the review process, and just participate in a cursory fashion and give reviews and feedback which don’t fall on either end of the spectrum.

Even worse, poorly structured performance management processes can kill employee morale, which in turn swiftly affects organizational productivity. This cause-and-effect phenomenon ensures that the cycle will continue to repeat, viciously, until something changes. And to answer the question, when it comes to a poorly structured review process, nobody wins and everybody loses.

Rethinking Performance Management: Success Stories from Leading Companies

Quite a few organizations have restructured or attempted to restructure their performance management processes. Some of the most prominent ones are Adobe, Deloitte, Accenture, GE, and Microsoft to name a few.

Restructuring a performance management process is not a simple task, especially when the number of employees in the organization runs into thousands. But all the same, how did they fare, and what spurred the change?

1.8 Million Hours?

Deloitte: Reimagining Performance Management for Time Efficiency

Though Deloitte had been wanting to restructure its performance review process for a long time, the need for change was not overwhelmingly certain until they figured out how much time they were actually spending on performance management processes. Mind you, it was just the preparation for the review process. They did not include the review process itself.

To their surprise (and horror one would imagine) Deloitte found out that yearly they were spending 1.8 million hours preparing for the performance review process alone. For context, Deloitte is an organization that has 65000+ employees strong. If we were to do a little math, Deloitte was investing close to 4 working days on each employee, just to prepare for the review.

The adage ‘time is money’ seems especially relevant here. Deloitte realized performance reviews were essentially a drain on their time and resources and that is what changed. They still wanted performance management to be a part of their organizational processes, but in a way that better utilized the organization’s time.

The first thing Deloitte decided was what practices they would no longer follow. These were:

• No more cascading objectives,
• No more once-a-year reviews
• No more 360-degree-feedback tools

The next thing they did was to change the way they approached evaluating an employee’s performance. They did away with the concept of peers rating their peers and instead focused on managers talking about how they would work with their team members in the upcoming year, not what they thought of them in the past year.

Deloitte named this practice ‘performance snapshot’, a way of evaluating an employee without falling prey to the idiosyncratic rater effect*.

And finally, Deloitte made the decision to have weekly check-ins. These weekly check-ins would be initiated by the direct report, as opposed to only the manager. By making these weekly check-ins a part of the manager’s work as opposed to an additional responsibility, Deloitte was able to integrate this into their workflow.

Rank & Yank

Microsoft: Moving Away from Stack Rankings to Boost Collaboration

First developed by then GE CEO Jack Welch, and then developed into something of an art form by GE, stack ranking, which is also known as the vitality curve or the rank and Yank system, is infamous in the world of performance management.

According to the 20-70-10 system developed by Jack Welch, the top 20% of the workforce is the most productive, the next 70% work adequately and are vital to the workforce, and the bottom 10% are poor performers, who should be fired.

The reason why stack rankings are so contentious is that not only do they pit employees against each other, but they also kill qualities such as collaboration and teamwork and make employees afraid of working with other talented employees.

And yet, for the longest time, stack rankings were extremely popular despite the many criticisms leveled against this system. Some of the companies that were known for their use of stack rankings were Goldman Sachs, Juniper Systems, and Microsoft.

Microsoft in particular faced a number of lawsuits with respect to its ranking system way back in 2001 itself. It was also the subject of an article later on, in 2012 by Vanity Fair, called ‘Microsoft’s Lost Decade”. The article by Kurt Eichenwald heavily criticized Microsoft’s ranking practices and also brought the company a lot of media attention.

It was only in 2013 that Microsoft did away with stack rankings. However, by that time, considerable damage had been done to the organization.

Microsoft revamped its performance management process by doing away with any semblance of a rating curve. Instead, they focused on employee growth and development and also began placing major emphasis on teamwork and collaboration, two qualities that a decade or so of stack rankings had killed.

Additionally, Microsoft created a generous reward fund and instead of a targeted distribution which is what happened earlier, managers were given permission to reward their direct reports accordingly, as long as it fell within the budget.

Letting Go of a Legacy

GE: Embracing Change for a Modern Workforce

Two years after Microsoft denounced stack rankings, GE followed suit in 2015. While they had given up stack rankings in 2005 itself, in 2015, they once more overhauled their performance management process by introducing a new app known as PD@GE. By abandoning their legacy performance management system, GE wanted to show its 300,000 plus employees that they were willing to change to keep up with the times.

Through the PD@GE app, GE wanted to set up a less strictly regimented performance management system whose main hallmark would be more frequent feedback.

Though Jack Welch seems to be GE’s most enduring legacy, a lot of senior executives realized that Welch’s ways were better suited to a time when GE needed to establish itself as a tour de force. They have now realized that the old ways will not work in a workforce that has more millennials in it than before.

Change vs. Continuity: Why Performance Management Still Faces Old Challenges

Despite organizations dropping performance reviews, how much has really changed in the past few years?

The answer is, not much at all.

Quite a few organizations still continue to stick to the old ways of doing performance management. This includes stack rankings as well. We must understand that a lot of organizations still practice stack rankings without outright saying that they do so. They just call it a performance measurement tool without elaborating any further on it.

The thing about overhauling performance management is that it only works when you have a good backup plan in place. If you choose to overhaul your performance management process without giving much thought to how it affects other factors such as compensation, bonuses, promotions, etc, then your new process is going leave the organization feeling even more adrift than before.

Adobe’s new performance management process worked because they distilled down their performance ethos into three distinct subsets. They were able to do away with ratings because they figured out how managers would measure performance and account for compensation, without the help of ratings. This might not be the same in many other places.

A study by global research firm CEB Gartner reported that when ratings were removed from the performance management equation, managers often felt adrift and unsure of how to measure performance. [2]

So what is the solution? How can performance management be revolutionized without it losing its essence?

The answer is technology. In today’s digitally connected world, technology can help bridge the distance between performance management and employees.

Performance management software can do a lot more than just act as a repository for holding performance data. It can prompt employees and managers to share feedback. It can act as a place for them to communicate socially, without the titles of employee/manager holding them back.

The software can run the numbers and show you how many employees are participating in the annual review cycle, where they fall on a leadership scale, how much feedback managers have shared with others, etc.

A good performance management software can help organizations rejuvenate their performance process without turning the entire thing upside down and making it seem like a tornado has blown through the organization.

And even better, good performance management software can reduce the amount of time that is spent on performance processes. And isn’t that what organizations are really looking for?

What does Engagedly recommend?

The HR market today is inundated with a number of different software. The mantra is to automate everything since all we want to do is make all our day-to-day processes easier. It can seem overwhelming when you set out to look for software that matches your needs and instead end up wondering if you should just stick to your current performance management process because it is the lesser of the two evils.

You are not alone in thinking so. There’s a reason why performance management has not undergone a sea change for so long. Traditional processes are so entrenched in our workflows that we cannot imagine life without them.

We complain about performance management being a chore and yet we dutifully fill out forms, stress over the year-end review and think about what to do next, and then repeat the entire cycle the next time.

The first thing you need to do as HR is seek the buy-in of those who make the big decisions. The obvious decision might be just getting the CEO on board but in actuality, it also involves getting the buy-in of the people who are going to use the software, that is the managers and the employees.

Here are a few more aspects you need to consider before you invest in performance management software.

Nine Key Criteria for Choosing the Right Performance Management Software

What are the components of a good performance management system?

This is a good question to ask yourself before you embark on the hunt for performance management software.

Performance management is not just about reviews. In fact, performance reviews make up a very small portion of the entire process. Good performance management includes continuous feedback, consistent goals and objectives, frequent communication, and learning and development. The software you are looking for should have these modules and additionally, if these modules can be integrated, that’s even better.

Do not look for standalone applications and then try to integrate them. That way lies disaster. A lot of performance management software is available in the form of complete application suites. Those are the ones you should have your eye on.

1. What is the set-up like?

Easy Setup and Accessibility

Choosing a cloud-based application or a software that must be installed manually does make a difference when it comes to performance management software. Cloud-based software applications do not need any set-up. All they need is a device and a connection to the Internet for users to access them.

On the other hand, software applications which need to be installed required a set-up process that can be short or lengthy depending on the size of the application. We recommend using a cloud-based software application.

Not only is easy to use and fuss-free, but it also ensures that employee data is securely stored on a server and not on the device. So in the event of a device crash, you won’t have to stress about retrieving data. It’s already been securely backed up elsewhere.

2. Ease of use

We cannot stress how important it is that you pick a performance management software that is easy to use. The main problem with traditional performance management processes is that they can get tedious and cumbersome. When you begin using a software application and find it even more tedious than your previous performance process, you’ve already lost the battle.

Do not just request demos and download brochures and make a decision. Do your homework and request a free trial. And if you have the option of doing so, take the application for a test run with a control group. If your software of choice stymies users and causes more confusion than is worth, you know you need to look for something different.

3. Does it align with what you are looking for?

Alignment with Your Organizational Needs

When choosing a performance management software, it is absolutely vital to have that software align with your own expectations about performance management. It helps if you have a list of what you would like to change in your performance management process or what you want to introduce to it.

If your list of requirements includes, a flexible and customizable performance module, integration with other secondary modules, and a goals module, then you should look for software that fits those needs to a T. Because it is absolutely possible for software applications to be great in every which way and yet be completely unsuitable for your own organization and performance management culture.

4. Look for overall flexibility

For software to be useful, you need to be able to customize it in order to serve the needs of the end-users better. Performance management software that lends itself to flexibility and customization is what you should look for.

Because this software makes it easier for organizations to enact change when it comes to review processes. If they can be tweaked to suit your needs, that’s how you know the software is going to be a good fit.

5. Performance analytics and insights

Analytics can reveal so much, especially when it comes to performance. On one hand, you have your basic reporting, which gives you an idea of how your organization fares when it comes to participating in performance management processes. On the other hand, there is in-depth analytics such as leadership potential, nine-box analytics, recommendation analytics, etc.

These analytics can be of great use to both HR and managers as not only do they help review employee performance, but they also help HR and managers make other important decisions such as promotions, discovering leadership potential, identifying high performers, making compensation decisions, etc.

6. Reminders and notifications

One reason why traditional performance reviews get so frustrating to do is that no one wants to be that person who has to send out company-wide missives asking managers to submit performance review templates or remind them that employee performance reviews are due.

An ideal performance review software will send out reminders and notifications like clockwork, thereby reminding employees of overdue tasks and also reducing the burden that is placed on HR when it comes to administrative tasks such as these.

7. Cost and effectiveness

A performance management software is only effective when in addition to the software being the right match for your organization, you also receive excellent customer support from the vendor.

Good software providers are willing to meet organizations halfway and ease the transition process from paper to software or software to software as much as possible. Though it might be explicitly stated, take the liberty to check with service providers if they are willing to help you with onboarding, support, technical issues, etc and to what extent do they provide customer support.

8. Budgetary concerns

We cannot stress this enough but do not blow your budget on software you cannot afford or vice versa, skip out on great software in order to save costs. The beauty of the HR software market is that there is something there for everyone.

And to be honest, enterprise-class software may not be the best fit for you, if you are a small-sized business no matter how many bells and whistles it has. Similarly, simple performance management software may not suit the needs of an organization that has some very specific needs and requirements.

9. Software that can scale up

Scalability for Growing Organizations

When making the shift from traditional processes to more progressive performance management approaches, it is important to start small and then slowly scale up. When an organization makes an abrupt jump from traditional to progressive processes, there’s a good chance many employees will suffer from whiplash at the sudden change.

After all, not everyone can adapt to change right away. The idea is to grow and adapt as your own needs grow. Software that can scale up as an organization grows can make the transition from traditional processes to progressive management seamless.

The Engagedly Way of Performance Management

Performance management when done right can be a phenomenally useful tool when it comes to improving organizational productivity, boosting employee development, and of course, maintaining a steady state of employee engagement.

Performance management at Engagedly is a process that continually changes. We did not get it right at the first try. But each year, we review and reinvent and keep moving forward.

We do not believe in performance reviews that happen only once a year and feedback that is only shared once a year, usually during the time of the review. We know how dangerous it is to leave it until the last minute. Instead, we focus on continuous feedback, measurable goals and objectives, and frequent check-ins.

We encourage frequent dialogue, both formal and informal (and not just the one-sided kind) because constant communication is the foundation of good performance management.

We also use the Engagedly application to keep track of goals and objectives and feedback which ensures that all the information with respect to a performance review is stored in a place that is easily accessible to both manager and employee.

When it comes to the end of the year, we too have performance reviews. Because the groundwork has already been laid out throughout the year, performance reviews are easy.

No stress, no fuss. And that’s the way they should be.

Resources & References

Capelli, Peter, and Anna Tavis. “The Performance Management Revolution.” hbr.org/: 2016/ 10/the-performance-management-revolution.

HR, CEB. “CEB Blogs.” CEB Blogs Corporate HR The Real Impact of Removing Performance Ratings on Employee Performance Comments, 12 May 2016, . www.cebglobal.com/blogs/corporate-hr-removing-performance-ratings-isunlikely-to-improve-performance/.

Watson Wyatt Worldwide (2004). Performance management programs earn failing grade. ‘WorkUSA 2004: An Ongoing Study of Employee Attitudes and Opinions-PM Summary. http://www.watsonwyatt.com/us/pubs/insider/showarticle.asp?ArticleID=13243

Ewenstein, Boris, et al. “Ahead of the Curve: The Future of Performance Management.” www.mckinsey.com/business-functions/organization/our-insights/ahead-of-the-curve-the-future-of -performance-management.

Buckingham, Marcus, and Ashley Goodall. Reinventing Performance Management. Apr. 2015, hbr.org/2015/04/reinventing-performance-management.

Adobe. Full Study: Performance Reviews Get a Failing Grade. 11 Jan, 2017, www.slideshare net/adobe/full-study-performance-reviews-get-a-failing-grade.

Meinert, Dori. Is It Time to Put the Performance Review on a PIP? 1 Apr. 2015, www.shrm.org/hr-today/news/hr-magazine/pages/0415-qualitative-performance-reviews.aspx.