How to Conduct a Performance Review for Year-Round Growth
Too many performance reviews are wasted opportunities. It’s time to change that.
When conducted with intention, performance reviews are strategic checkpoints in an ongoing growth journey for you, your employees, and your organization.
Done well, they’re a powerful opportunity to:
- Connect meaningfully with team members
- Assess current performance and progress
- Strategize future development goals
- Align individual growth with organizational objectives.
In fact, the term “performance review” barely scratches the surface of the full potential of these conversations. Many organizations now opt for terms like development review or growth alignment meetings.
This isn’t just slapping a new name on an old practice. It signals a deeper, forward-looking focus. One that will resonate with employees, when the term is backed up by action.
When approached with intention, these reviews can become one of your most effective tools for organization-wide success.
What’s the True Purpose of Performance Reviews?
Start with this fundamental question: Why are we doing this?
If the answer is something like, to deliver feedback… you’re missing the bigger picture.
A strategic performance review should help:
- Identify training and development gaps
- Clarify performance expectations
- Understand personal career aspirations
- Align employee goals with corporate objectives
- Evaluate team structure and hiring needs
- Recognize achievements and strengths
- Identify growth opportunities
- Set goals for the year ahead
- Strengthen leadership-employee relationships
Ultimately, it’s about so much more than looking back. It’s about setting the stage for what comes next.
The Broader Impact of Well-Run Reviews
When done thoughtfully, strategically and intentionally, these conversations can lead to:
- Renewed engagement and motivation
- Stronger relationships between team members and leaders
- Clearer communication pathways
- Better alignment of personal and organizational goals
- A foundation of trust and co-creation
Performance Review Tips for Leaders: Before, During & After
Before the Review
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Clarify Purpose & Approach
Meet with your team in advance to share the “why” behind the review process. Discuss how it connects to your broader leadership approach, organizational goals, and what you hope for your team to gain from it.
People support what they help create. Bringing clarity and intention upfront helps people feel part of the process. -
Gather Feedback from Multiple Sources
To get a well-rounded view, collect feedback from the people your team members interact with regularly. That could be peers, cross-team collaborators, clients, even vendors or suppliers, when appropriate.
Ideally, make these touchpoints throughout the year. This helps you better understand each employee’s contributions, challenges, and impact, well before you sit down for the review. It also helps employees feel truly seen. -
Provide Preparation Tools
Offer goal review exercises, self-reflection tools, and prompt questions like:
- When did you feel at your best?
- What are you most proud of?
- What challenges did you face?
- What would you like to grow, or do more of?
- How is your work life supporting your personal life?*
*Assure people that questions about personal lives do not need to be answered for anyone else, but are meant as self-reflection tools to help clarify needs, goals and growth direction.
During the Review
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Separate Compensation Discussions
Linking performance to pay is common. And perfectly acceptable. But linking the two conversations can derail deeper development discussions. Keep the conversation on growth distinct to maintain focus.
- Emphasize Forward Momentum
Acknowledge where things stand today, but keep the focus on future potential. Even when discussing challenges, strive to center the conversation around solutions and next steps. And speaking of momentum, consider exploring the concept of momentum tunnels with anyone having difficulty breaking habits or establishing stronger routines. - Use Clear Data-Driven Metrics
Establish clear, measurable goals, timelines and tracking, and discuss the approach if goals get off track. Emphasize that at-risk goals are an opportunity to learn, improve, and create positive outcomes. It’s always safe to discuss them. - Clarify Rating Systems (if applicable)
If you or your organization uses a rating scale, be transparent about what it means, how it’s calculated, and how to improve:
Vague: “You’re a 7 out of 10. Let’s aim for a 9.”
Effective: “You have a 7 because of three missed deadlines and a higher error rate. Let’s explore what led to that, and see how we can address it for the coming year.” - Guide Employees in Creating a Purpose Statement for the Year
A purpose statement can serve as a guiding star, and as a quick reminder of one’s focus. Guide employees to craft a statement that aligns:
– Their personal values
– Their professional aspirations
– The goals of the organization
That alignment is a powerful engine for sustained growth and engagement.
After the Review
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Hold a Follow-Up Session
Reconnect within a few weeks to reinforce goals, address obstacles, support action plans, and discuss any issues or concerns that have come up with implementation.
- Conduct Regular Check-Ins
Commit to regular touchpoints that reinforce that the review process isn’t a one-time event, but an ongoing conversation. Ask specific questions about goal progress, as well as open-ended questions like:- “What’s going well”
- “What’s blocking progress?”
- “How can I support you better?”
This is about ensuring people are supported, unhindered, and any potential risks are addressed before they become full-on problems.
Performance Reviews as a Co-Creative Process
Think of performance reviews as a shared leadership moment. You’re not just evaluating. You’re partnering.
When leaders talk about being a team, or “in this together,” this is a situation where you, as leader, can truly walk your talk.
Be a Safe Space
As a genuine partner in employee development, creating safe space sets the right tone for creating together.
- Listen actively, without judgment, and reflect back to ensure understanding.
- Stay curious: “Tell me more…”, “What’s that like for you…” or “What would a great outcome look like for you”.
- Normalize struggle: Be transparent about your own challenges, current and past. Talk about it as simply part of the human experience.
Be a Coach
A coach may lead the team, but is also part of the team, and deeply invested in guiding people to greatness, together.
- Be enthusiastic about their path: “This could really elevate your career”, “I can see this taking you far” or “I’m excited to see how this goes”.
- Help employees build from their strengths and what’s already working for them.
- Remove barriers as much as possible, whether it’s tools, staffing, resources… Let your team see you working for them.
- Recognize that people are whole, with lives outside of work that don’t get left at the door. Ask about personal goals too, and look for opportunities to support them.
Final Thought
When leaders treat performance reviews as strategic, co-creative conversations – not just check-the-box rituals – the impact is felt across the organization.
Growth becomes not just an individual responsibility, but a collective mission – a way of being that gets baked into your organizational culture.We partner with executives and organizations to create performance review processes that drive alignment, build trust, and inspire lasting development.
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We partner with executives and organizations to create performance review processes that drive alignment, build trust, and inspire lasting development.
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