Annual Performance Review and Goal Setting

Optimizing the Annual Review

There is something very inefficient in the annual performance review process if you ask me. The annual review is a (potentially) very good tool for the line manager the check in, review last year’s performance and set some goals for the year to come. When it comes to the goal setting however it can be much more efficient.

The number 1 rule for effective goal setting is creating a strong buy-in. If you do not believe in a certain goal, you will not work one inch harder to realize it. If, on the other hand, you set your own goals and you have a strong emotional attachment to realizing them you will give it your all to realizing the task at hand.

So instead of telling your direct report what her goals should be for the year, ask her to create her own goals for the year. Have her email them to you before the annual performance review and discuss them during your meeting. She will be more than happy to explain her goals to you and in a empowering conversation you can help her tweak the goals making sure they live up to your expectations. In order to create the strong buy-in it is key that her goals form the basis for the new annual goals for her performance. I guarantee you this slight change (when executed correctly) will significantly increase productivity and employee satisfaction.