Performance reviews don't improve performance. So why do we do them?
Leaders of high performing teams already know that performance management should be something that's done every day, not something that's batched up and done quarterly.
“This is my top priority, but I couldn’t make any progress last week because it’s perf season.” - VP of Engineering
I need more than two hands to count how many times I’ve heard the same thing from engineering leaders: it’s perf season, it’s taking up all my time, our team is tied up doing paperwork instead of shipping, and it all feels like a waste.
I ask these same leaders if they think their performance management cycles are worth it–if they really do improve team performance.
I’ve yet to hear a “yes.”
The problem with quarterly performance reviews
Leaders of high performing teams already know that performance management should be something that’s done every day, not something that’s batched up and done quarterly. Useful feedback happens in the moment, out in the open, and focused on the work. This is the center of why quarterly performance reviews don’t help our teams.
- Feedback loses value when it’s delayed. It should be timely and proportional, and this goes for positive and negative feedback. You wouldn’t let your friend walk around with spinach in their teeth, would you?
- Private conversations make it personal. Talking about performance behind closed doors often make it feel like a judgment instead of a chance to improve. When feedback is only shared in secret, the rest of the team misses the opportunity to learn and adjust.
- We should be reinforcing expectations publicly. If we want to achieve great outcomes as a team, the team needs to be coached together. For a team to align on expectations, they need to hear them in a shared space, not be left to piece together 10 different 1-1 conversations about what’s expected.
Formal review processes don’t do any of this, and they’re often a timesuck without the payoff.
“I can only concentrate on filling them out for like an hour. It just drains all of my energy.” - Director of Engineering
“This week I am trying to catch up on everything I missed while writing reviews” - VP of Engineering
The solution: continuous performance management
If you want your teams to actually improve, ditch the quarterly review cycle and start doing continuous performance management.
- Say what needs to be said, when it needs to be said. If something’s off, address it now. If someone does great work, acknowledge it immediately. No need to schedule a meeting three months later.
- Make feedback a team activity. Performance expectations should be clear to everyone, all the time. Open conversations about what’s working (and what isn’t) make a stronger team.
- Cut the paperwork. You don’t need formal review cycles to track progress. Quick, lightweight notes in a shared space are enough to document important takeaways without turning feedback into a paperwork problem.
“Sorry I didn’t get back to you sooner. I was underwater writing 11 performance reviews.” - Senior Engineering Manager
Working within existing systems
The reality for many of us is that we’re stuck in these cycles for HR or legal reasons.
First: CYA and documentation in case of termination, promotion, or other personnel decisions. Second: many companies tie compensation changes to these formal review cycles.
If this is you, here is a simple rule to follow: no new information should be shared in performance reviews. Practicing continuous performance management and documenting as you go will also let you get those reviews done faster.
How to change your performance management approach
Want to change the way you manage performance?
- Make feedback a daily habit. The best feedback is frequent, and in the moment.
- Normalize open discussions. Expectations aren’t a secret, so talk about them openly so everyone knows what good looks like. This will be uncomfortable at first! It gets easier with practice.
- Lead by example. If leadership doesn’t embrace continuous feedback, no one else will.
- If you want a team that actually improves, stop hoarding feedback for a big reveal and start making it a part of everyday work.
Performance management shouldn’t be about ratings and forms. It’s about helping people do better work, every single day.