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How Performance Reviews Impact 3 Tiers of Success

Conducting performance reviews are important for any organization for various reasons. Firstly let’s try and understand what performance reviews are. 

A performance review is a two-way, individualized conversation between a manager and an employee about performance impact, development, and growth. It is a critical component of an organization’s overall performance management strategy.

Traditionally, performance reviews have occurred once a year and have focused on evaluating past performance. Modern performance reviews should happen quarterly or monthly and should focus on driving and improving future performance.

Performance impact 3 tiers of success:

Employee success: Performance conversations are perfect opportunities to make or break trust. An open, honest, and regular dialogue helps to build trust among employees, managers, and the organization at large. Employees want to know—and deserve to know—exactly where they stand in terms of performance.

Ongoing performance conversations can boost employee success by:

Helping employees identify their needs, desires, and challenges

Cluing managers in on obstacles and decisions before they impact performance

Opening up opportunities to discuss feedback, celebrate recognition, and reinforce alignment

Team Success: 

Performance conversations help managers evaluate team performance by giving them a clear picture of how each team member is performing. They’ll know where the team is strong, where the team needs help or development, how to adjust goals, and the team’s potential to impact larger goals.

Organizational Success: 

If employees aren’t aligned and on a clear path to their success, organizations will have difficulty achieving important goals and objectives. Performance conversations allow managers to connect employees to the bigger mission and goals of the organization.

Thus performance reviews are very important at every level of the company and can be looked at from a top-down perspective or bottom-up perspective. 


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