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Ten Biggest Mistakes Bosses Make In

Performance Reviews

+ Comment now

In the world of organizational life, theres no single discussion that causes so much fear anddread on the bosss side and so much anger and resentment on the direct reports side than the

performance review.

Top Ten Reasons Wh !arge Companies "ail To #eep Their $est Talent Eric JacksonContributor

The %even &abits of %pectacularl 'nsuccessful

()ecutives Eric Jackson Contributor

Wh *ear(nd erformance Reviews -ont

/atter Laurie Ruettimann Contributor

I had drin0s last wee0 with a senior gu who wor0s for a global financial institution, who had1ust had his earend performance review a couple of wee0s ago. &e e)ploded in anger to meabout the e)perience. 2Ive had it with those gus. The dont give a s3 about an of thewor0 Ive done in the last 4 ears. Im doing the old 1obs of 5 people pre6778 and thedont than0 me and the 1ust want me to do more. Im 9uitting.:

http://www.forbes.com/sites/ericjackson/2012/01/09/ten-reasons-performance-reviews-are-done-terribly/#comment_replyhttp://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://blogs.forbes.com/laurieruettimann/http://blogs.forbes.com/laurieruettimann/http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://blogs.forbes.com/laurieruettimann/http://www.forbes.com/sites/ericjackson/2012/01/09/ten-reasons-performance-reviews-are-done-terribly/#comment_reply

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2Wait a second,: I said. 2In this econom; *oure going to 9uit over this;:

2-amn right. I can find another 1ob in the ne)t month for what I do. If these gus dontappreciate me, Ill go somewhere else.:

Wh do almost all performance reviews cause aggravation; &ere are the top ten was oucan ensure our ne)t performance with our reports will be a total bomb=.?ver the ears, Ive heard lots of complaints from laid off wor0ers who never saw it comingand then are bitter when the are tossed aside because there apparentl no longer gettingthe 1ob done. The point to a series of glowing annual performance reviews and thensuddenl being called into the bosss office to be let go. eople arent usuall resentful ifthere laid off because the compan is suddenl facing a crisis not of their own ma0ing@which isnt usuall the caseA. &owever, what drives people up the wall is when its clear thatthe boss has been bothered b some aspect of their performance, but never bothered tomention it to them until the time of their firing. :B little heads up would have been nice so Icould have tried to improve in that area,: said one person I 0now who went through thise)perience.

". Recency effect.This is a pscholog term for when we overl focus on the most recentevent as the basis for analzing the entire past ears performance. %o, if ou have somemista0e happen to ou ver recentl and it ends up being the entire topic of our performancereview even if ouve done a great 1ob the rest of the ear, ouve been a victim of therecenc effect. %ome bosses seem to have no memor, so the onl base their opinions onthe most recent events and opinions from others to form their opinion on whats happening.lus, the world we live in toda, with alwas on email and Twitter stream updates, ma0es useven more susceptible to doing this.

#. $o preparation.%ome bosses li0e to do these meetings 2on the fl.: I 0new one boss thatwould drive around with his sales gus and give them feedbac0 from the passenger seat onlong roadtrips. The worst part of this 0ind of approach is that it tpicall means the bosshasnt given an thought to how the report has done in the last ear and what the need to doto improve. (ven worse are the bosses who simpl cut and paste what was on last ears

performance review form to this ears with minimal if an changes. The message sent to theemploee is< 2Im ver important and bus. I dont have time to tell ou how I thin0 ouredoing at our 1ob.:

%. They never happen at a or &My peope know my !oor is aways open.' I cant tell ou

how man times Ive chatted with laz bosses who use that line< 2?h, m people 0now I havean opendoor polic and the can come to me to tal0 about anthing at an time.: I would

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sa 87 of the time in those cases, if I went to the reports and the answered me honestl,the would sa that the tpicall dont go to the boss because he or she is alwas on the

phone or loo0s too bus. Bnd, b the wa, the usuall never ta0e the boss up on the offer.The bosses who dont plan their performance reviews are tpicall not great planners in their

1obs. There will tpicall be other problems down the road for that bosss wor0 group if

there showing evidence of being unable to plan the simplest of meetings.

(. $o pats on the )ack.It might seem li0e a simple thing, but lots of bosses 1ust dont giverecognition to their people when the do a good 1ob. These das, were all bus and most

people are overwor0ed and underappreciated. $ut it never ceases to amaze me how muchabuse people can ta0e from the worst boss and the worst wor0 environment, as long as theget some random appreciation for their hard wor0 ever now and then. /abe its 1ustinertia, or fears about doing a 1ob search in a bad econom, but I find most people want tosta where the are wor0ing at their current 1obs. /abe the have their 0ids in a dacarenearb. /abe the have a decent commute. Whatever it is, people can put up with a lot ofgrief. The 1ust need an occasional bone to be thrown their wa. %a than0s to our people

when the do a good 1ob. Its the cheapest bonus oull ever pa.

*. $o recognition for !oing the work of " peope. /ore than 1ust saing than0s, itsimportant to remember that something structural has happened in the 1ob mar0et since the6778 financial crisis. /ost industries have dramaticall cut headcount. Bs a result, theremaining fol0s have been as0ed to ta0e on the responsibilities of their former colleagues.Were now going into the 4rd ear since most of these ma1or laoffs have happened. ?n theone hand, the remaining emploees are happ the continue to have their 1obs, but a lot ofthem are starting to get burned out. Bs mentioned in the previous point, a little than0s wouldgo a long wa. /ost times though, bosses sa nothing. The old emploees are gone, the new

people pic0 up the slac0, and life rolls on. ()cept that theres a deep undercurrent ofresentment among lots of emploees out there.

+. $ot )eing truthfu with empoyees a)out their performance. We all 0now /r. Dice Eubosses, who have a hard time giving one of their reports negative feedbac0. We also 0nowbosses who never sa anthing good. The onl complain. %teve Fobsat Bpple@BB!A wasfamous for ripping his people. In m e)perience, most people can handle the truthG the 1ustcant handle inaccurate perceptions. Bnd those who cant handle the truth shouldve heard itears ago but probabl had laz managers. If its truthful, most people can ta0e negativefeedbac0 3 even lots or constant negative feedbac0 as was the case with Fobs. The can ta0eit because the feedbac0 is in service of the mission at the compan. $ut if the boss is wa

offbase in his or her perceptions of a reports performance, it is maddeningl frustrating forthe emploee.

Top Ten Reasons Wh !arge Companies "ail To #eep Their $est Talent Eric JacksonContributor

http://www.forbes.com/profile/steve-jobs/http://www.forbes.com/profile/steve-jobs/http://www.forbes.com/companies/apple/http://www.forbes.com/companies/apple/http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/profile/steve-jobs/http://www.forbes.com/companies/apple/http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-large-companies-fail-to-keep-their-best-talent/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/

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The %even &abits of %pectacularl 'nsuccessful

()ecutives Eric Jackson Contributor

Wh *ear(nd erformance Reviews -ont

/atter Laurie Ruettimann Contributor

,. $o foow-up.?ne of the most bureaucratic things about performance review meetings arethe forms that get filled out dutifull and sent to &R. Bs part of ever performance review,there should be goals set for the coming ear. The worst bosses forget about these goals assoon as theve been completed. Theres no 9uarterl review of them to see if the emploeeis on trac0. Theres no midstream feedbac0 on how the report is doing in relation to thegoals or tips from the boss on what to do to get bac0 on trac0. Then, =6 months later, the oldform gets pulled out from the file to be discussed again and new goals are set. To beeffective, the goals have to be top of mind for both the report and the boss throughout the

ear.

/. $o !iscussion aroun! the reports career am)itions. /ost people dont thin0 a lot oftheir career path H whether there a boss or a report. *et, people need to be as0ed 2what doou want to do;: or 2where do ou want to go;: at ever performance review @or at aseparate dedicated meeting annuallA. This forces the emploee to loo0 him or herself in themirror. B lot of times, some disgruntled emploee H if there forced to answer the 9uestionof where the want to progress to 3 will realize there not in the right spot in the current

1ob. ?thers will use the discussion to soa0 up tips from the boss li0e a sponge and end upbeing much more engaged and motivated in their 1obs.

erformance reviews might not ever be fun, but the can be effective and powerful was ofcreating more loalt among team members when there done right.

http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://blogs.forbes.com/laurieruettimann/http://blogs.forbes.com/laurieruettimann/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://www.forbes.com/sites/ericjackson/2012/01/02/the-seven-habits-of-spectacularly-unsuccessful-executives/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://www.forbes.com/sites/laurieruettimann/2011/12/21/why-year-end-performance-reviews-dont-matter/http://blogs.forbes.com/laurieruettimann/

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The 0even 1a)its of 0pectacuary

nsuccessfu E3ecutives

%dne "in0elstein, the %teven Roth rofessor of /anagement at the Tuc0 %chool of$usiness at -artmouth College, published 2Wh %mart ()ecutives "ail: 8 ears ago.

In it, he shared some of his research on what over 7 former highfling companies H li0e(nron, Tco, WorldCom, Rubbermaid, and %chwinn H did to become complete failures. Itturns out that the senior e)ecutives at the companies all had J &abits in common. "in0elsteincalls them the %even &abits of %pectacularl 'nsuccessful ()ecutives.

These traits can be found in the leaders of current failures li0eResearch In /otion@RI//A,but the should be earlwarning signs @cautionar talesA to currentl unbeatable firms li0eBpple@BB!A, Eoogle@E??EA, and Bmazon.com @B/KDA. &ere are the habits,as

"in0elstein described in a 6775 articlehimsA0trategic Priorities.I applaud companies tring to build an incubator or

2bric0house: around their talent, b giving them new e)citing pro1ects to wor0 on. Thechallenge for most organizations is not setting up a strategic priorit, li0e establishing anincubator, but stic0ing with it a ear or two from now. Top talent hates to be 21er0ed around.:If ou commit to a pro1ect that the will be heading up, ouve got to give them enoughopportunit to deliver what theve promised.

(. 7ack of =ccounta)iity an!Aor teing them how to !o their 8o)s. Blthough ou cant21er0 around: top talent, its a mista0e to treat top talent leading a pro1ect as 2untouchable.:Were not saing that ou need to get into anones business or telling them what to do.&owever, top talent demands accountabilit from others and doesnt mind being heldaccountable for their pro1ects. Therefore, have regular touch points with our best people as

the wor0 through their pro1ects. Thell appreciate our insightsUobservationsUsuggestions3 as long as the dont spillover into preaching.

&ow To Eet The $est %everance -ealDeborah L. Jacobs*orbes Staff

Things $estInClass Companies -o To Erow !eaders Eric Jackson Contributor

Top Ten Reasons Wh QC$ac0ed Companies "ail

Eric Jackson Contributor

http://www.forbes.com/sites/ciocentral/2011/12/05/the-path-to-becoming-a-fortune-500-ceo/http://www.forbes.com/sites/ciocentral/2011/12/05/the-path-to-becoming-a-fortune-500-ceo/http://www.forbes.com/sites/deborahljacobs/2011/11/02/how-to-play-your-hand-when-youve-been-fired/http://blogs.forbes.com/deborahljacobs/http://blogs.forbes.com/deborahljacobs/http://www.forbes.com/sites/ericjackson/2011/12/14/6-things-best-in-class-companies-do-to-grow-leaders/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-vc-backed-companies-fail/http://blogs.forbes.com/ericjackson/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/ciocentral/2011/12/05/the-path-to-becoming-a-fortune-500-ceo/http://www.forbes.com/sites/deborahljacobs/2011/11/02/how-to-play-your-hand-when-youve-been-fired/http://blogs.forbes.com/deborahljacobs/http://blogs.forbes.com/deborahljacobs/http://www.forbes.com/sites/ericjackson/2011/12/14/6-things-best-in-class-companies-do-to-grow-leaders/http://blogs.forbes.com/ericjackson/http://www.forbes.com/sites/ericjackson/2011/12/14/top-ten-reasons-why-vc-backed-companies-fail/http://blogs.forbes.com/ericjackson/

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&ow To !eave Bn 'nsatisfing Fob Bnd

ursue *our -ream Career Cathy Scott Contributor

*. Top Taent ikes other Top Taent.What are the rest of the people around our top talent

li0e; /an organizations 0eep some people on the paroll that rationall shouldnt be there.*oull get a litan of rationales e)plaining wh when ou as0. 2Its too hard to find areplacement for himUherP.: 2Dows not the timeP.: &owever, doing e)it interviews withthe best people leaving big companies ou often hear how the were turned off b some oftheir former 2team mates.: If ou want to 0eep our best people, ma0e sure theresurrounded b other great people.

+. The Missing ision Thing.This might sound obvious, but is the future of ourorganization e)citing; What strateg are ou e)ecuting; What is the vision ou want thistalented person to fulfill; -id the have a saUinput into this vision; If the answer is no,theres wor0 to do 3 and fast.

,. 7ack of Cpen-Min!e!ness.The best people want to share their ideas and have themlistened to. &owever, a lot of companies have a visionUstrateg which the are tring toe)ecute against 3 and, often find opposing voices to this strateg as an annoance and a signthat someones not a 2team plaer.: If all the best people are leaving and disagreeing with thestrateg, oure left with a bunch of 2es: people saing the same things to each other.*ouve got to be able to listen to others points of view 3 alwas incorporating the best partsof these new suggestions.

/. >hos the BossDIf a few people have recentl 9uit at our compan who report to thesame boss, its li0el not a coincidence. Well often get as0ed to come in and 2fi): someone

whos a great sales person, engineer, or is a founder, but who is driving everone around them2nuts.: We can tr, but unfortunatel, e)ecutive coaching usuall onl wor0s 44 of the timein these cases. *oure better off tring to find another spot for them in the organization 3 or,at the ver least, not overseeing our highpotential talent that ou want to 0eep.

Its never a onewa street. Top talent has to assume some responsibilit as much as theorganization. &owever, with the scarcit of talent 3 which will onl increase in the ne)t ears 3 %mart ?rganizations are ones who get out in front of these ten things, rather thanwait for their people to come to them, as0ing to implement this list.

http://www.forbes.com/sites/crime/2011/12/11/how-to-leave-an-unsatisfying-job-and-pursue-your-dream-career/http://www.forbes.com/sites/crime/2011/12/11/how-to-leave-an-unsatisfying-job-and-pursue-your-dream-career/http://blogs.forbes.com/crime/http://blogs.forbes.com/crime/http://www.forbes.com/sites/ericjackson/2011/12/15/top-ten-keys-to-building-a-talent-firewall-in-your-organization/http://www.forbes.com/sites/stephaniechristensen/2011/12/11/5-ways-to-spot-a-bad-boss-in-an-interview/http://www.forbes.com/sites/crime/2011/12/11/how-to-leave-an-unsatisfying-job-and-pursue-your-dream-career/http://www.forbes.com/sites/crime/2011/12/11/how-to-leave-an-unsatisfying-job-and-pursue-your-dream-career/http://blogs.forbes.com/crime/http://www.forbes.com/sites/ericjackson/2011/12/15/top-ten-keys-to-building-a-talent-firewall-in-your-organization/http://www.forbes.com/sites/stephaniechristensen/2011/12/11/5-ways-to-spot-a-bad-boss-in-an-interview/