Performance Reviews: Best as Structured Conversations, Not Report Cards

A positive corporate culture is built on a foundation of trust.

To enjoy the long-lasting benefits of a positive culture, a team must trust its leadership. For that to occur, leadership must first demonstrate trust in the team. This is no easy task. The cornerstone of trust is communication. Without good communication, trust is conditional, and gains in corporate culture are temporary. The challenge, then, is how can a leader best communicate with their team?

The basics of communication are well-documented, effective tools that help increase and improve communication throughout an organization. However, one often-overlooked tool is the value of a well-thought-out performance review.

Performance reviews provide an opportunity to communicate one-on-one with team members openly and clearly. These reviews help team members understand their unique contributions to the team and company. They are also a chance for leadership to demonstrate their understanding of the team members while both sides learn more about each other.

So, how can we make this happen effectively?

Many performance review processes, particularly in larger companies, resemble report cards more than meaningful evaluations. Scoring team members often diminishes communication gains. Any system involving forms, checklists, numbers, percentages or grades can negatively impact how team members perceive leadership. After all, no one wakes up looking forward to being graded—we grade tests, not people.

Consider the Following Math

Team members work 2,000+ hours per calendar year, equating to approximately 120,000 minutes.
Consider that the average interview for a qualified replacement team member takes 60 minutes. Typically, three interviews are conducted per candidate, with three candidates interviewed per position. That’s nine hours spent interviewing per role, not including time spent reviewing resumes. Then there is the matter of training, which adds substantially to the ramp-up investment.
If a performance review using a scoring method takes 15 minutes to complete and another 15 minutes to deliver, that amounts to just 30 minutes per year—0.0025% of the total hours worked. That is an insufficient investment in evaluating performance.
Using a method of structured conversation, each performance review will take the supervisor or manager two to four hours to prepare, plus an additional hour to deliver. With 11 to 15 team members, leadership will invest 45 to 75 hours annually in performance evaluations. This time is well-spent and will yield a significant return on investment. That is a fraction of the time required to replace a good team member.

Instead of treating performance reviews as a simple evaluation, leadership should view them as an opportunity to supercharge their greatest asset—their people. Team members have families, goals, hobbies and income needs. The question then becomes: how can we evaluate performance without resorting to scoring?

Structured Conversations Over Scoring

A structured conversation that follows an agenda or outline will take longer than a traditional scoring review, but the investment is worthwhile.

When considering the time required for an effective evaluation, remember that it only takes three to five hours to conduct a meaningful performance review that enhances team member engagement and retention. Additionally, the team members will likely be supercharged with enthusiasm when they learn about your perception of their specific contribution to the team.

Performance reviews should enhance attitudes, communication, relationships and overall performance. By shifting the focus from grading to meaningful conversations, organizations can foster a culture of trust, growth, and continuous improvement.

Consider evaluating the team member based on topics similar to:

The Basics of Employment

Safety Compliance

Is the team member compliant with safety requirements, including Personal Protective Equipment?
Do they understand and use lock-out tag-out? Also discuss equipment operation.
Do they place hands in areas where they should not? You should be very constructive in this area, as team members’ safety is the most important aspect of manufacturing. Educate and inform. Do not chastise.

Attendance, Reliability and Overall Attitude

Has the team member been late or left early excessively?
Is the team member someone who can be counted on when needed?
Can the supervisor count on them to perform as instructed with minimal supervision?
Are they pleasant to work with? Tell them and be specific in positive areas.

Communication and Teamwork

Is the team member easy to communicate with? This is not a language question, but rather a teamwork question.
Are they approachable or confrontational?
Does the team maintain a positive attitude when talking with teammates, or do they participate in gossip and rumors?
Does the team member have a positive perception towards their co-workers?
Does the team member work well with others?
Do they accept direction well?
Do they treat their co-workers and the leadership team with respect?
Are they trustworthy?

Organization and Initiative

Is their work area clean and well-organized?
Do they leave a mess behind for others?
Are their tools organized in their toolbox and easy to find?
When something needs to be put away or completed, does the team member do this without being asked?
Are they alerting the appropriate party immediately when a quality problem arises?

Quality of Work

Does the team member pay attention to the quality of their work and the quality of products produced on their shift?
Are they inspecting the product thoroughly?

Judgment and Decision-Making

Does the team member apply good judgment?
Are their decisions based on available information, or guesswork?
What happens when the work stops?
Do they inform the supervisor or leadership when there is a problem?
Do they follow instructions or take shortcuts?
Are they compliant with company procedures, protocols and policies?
Solid judgement and decision-making skills combined with a positive attitude help prepare team members for quick growth and promotion.

Job Knowledge and Skills Improvement for the Covered Period

Is the team member an expert, superior, average or novice in their area?
Could they immediately walk into another job like this one and do it without instruction? If not, how can you help improve their skills.
Does the supervisor or leadership need to frequently remind this person of basic job duties?
Does the team member try to learn and do more, or do they wait to be told?
Have their skills improved?
Have they taken on additional responsibilities?

General Comments

What does the supervisor specifically like about working with this team member?
What opportunities does the supervisor see in the future for this team member?
How can the supervisor help remove the barriers to further success?
How can the supervisor help to bring out the best in this team member?

In a performance evaluation, the most important thing is for the team member to walk away with a very clear and positive understanding of their strengths and weaknesses. There should be no surprises for the supervisor or the team member. Surprises are a clear sign that day-to-day communication needs a lot of attention. The similarities between the self-evaluation and the structured-conversation evaluation are an eye-opener.

The goal of the evaluation is to further clarify what everyone should already know. The team member should walk away with an understanding and belief that the supervisor is genuinely invested and interested in their success.