This document discusses how annual performance reviews are becoming outdated and companies are shifting to more frequent, continuous feedback models. It provides examples of companies that are adopting automated, metrics-driven systems that allow for consistent feedback through weekly or monthly meetings. These new approaches provide benefits like making progress easier to track, creating realistic expectations, and allowing HR to analyze workforce data more continuously. The document also describes how companies like KPISOFT provide performance management platforms that facilitate goal setting, continuous feedback, collaboration between managers and employees, and calibration of performance data.

1. Is your company still utilizing an annual performance review to measure and
reward?
Well, guess what? That archaic performance planning process is becoming a thing of the
past as executives and stakeholders are requesting full transparency of corporate and
individual performance. The process of reviewing performance is changing and that
requires a much more frequent look at how the company is doing on a weekly, monthly
and quarterly basis. Shareholders, investors and even competition, are fueling the need
for metrics driven performance. What does that mean for today’s workplace and what are
some of the industry leaders doing about it?
Research continues to demonstrate that annual performance reviews don’t accomplish
what leadership hopes. One Deloitte study found that nearly 60% of companies say
reviews are not an effective use of time, compared to just 8% who said they could tie
existing performance management to value improvements.
Managers and HR professionals know that the old ways are broken, but luckily many
have already started to put new, effective methods into place. For most, there’s no need
to reinvent the wheel, simply to hone the tools and practices established based on
employer preferences. And…. employer preferences are creating a huge trend in the
workplace. From a Deloitte 2016 Study, The New Organization; Different by Design,
“After three years of struggling to drive employee engagement and retention, improve
leadership, and build a meaningful culture, executives see a need to redesign the
organization.”

2. Part of this redesign involves how employers look at performance overall. To address
performance concerns and identify high potentials, many companies are adopting new
employee evaluation models that provide consistent feedback tied to objective,
transparent measures. Making the change to an automated system that allows consistent
feedback often means that managers are simply taking time during established weekly or
monthly meetings to discuss individual performance, reaffirm employee contribution, and
listen to employees’ ideas and career goals. Others are using feedback conversations via
check-in emails to include reviews and status updates. Performance data and employee
goal-setting is then passed on to HR for analysis on a more frequent basis.
Not only are these measures more appealing for many employees – such as making
progress easier to track and creating more realistic expectations – but they build on
existing continuous improvement practices and can take some of the stress and fear out of
change. Human Resource teams also get the added benefit of analyzing the workforce in
an ongoing fashion, instead of having to cram analysis of a year’s worth of progress into
the final few weeks of the year.
Engaging Consistently
One of the standard management practices that is being used is a continual review
process where employee progress and successes are discussed consistently, with clear
objectives presented for both parties to see.
While your executive management may not directly be considering performance relative
to annual goals, consistent meetings do provide a strong starting point. Discussions often
center around the current business needs; while the ability to shift and address new needs
is often a successful performance indicator when looking at employee fit and value.
This level of constructive, ongoing feedback, often called coaching, not only promotes
continuous improvement and high employee engagement but also increases employee
retention. Information coming from continuous feedback practices provides HR with the
first inroads into performing long-term analysis of workforce trends across a variety of
metrics.
Tracking performance by metrics can help an organization to identify high potentials,
reward the top performers and retain talent. Much has been written about Millennials,
who are generally born between the early 1980s and 2000. It is forecasted that 75% of the
workforce will be made up of Millennials by the year 2025. According to Shelby

3. Doherty’s blog posted in March 2016 Huffington’s Post, “That statistic is shocking, yet
inspiring (...for some of us...) Millennials… expect to be paid well, want to be fulfilled,
enjoy flexible work arrangements, a challenge, and a company with strong, ethical
leaders.”
Capitalize on this knowledge by organizing it in a modern continuous performance
engagement platform that creates a way to align and track performance more consistently
by tying reviews to specific workforce metrics…..thereby ensuring tomorrow’s workforce
will find their success on one of your high performing teams!
Reinventing the Review Process with KPISOFT
Its essential for every company to understand the importance of aligning corporate
strategic goals to every level of employee in the organization. Turning goals into action
items can be a challenge if everyone is not aligned. Bridging all of these new changes and
informational needs into the modern HR department are brands like KPISOFT, which
provides a core structure to show employees how they are progressing toward specific
goals in a meaningful way.
Use Continuous Feedback
Performance process templates are available in the KPISOFT software. These templates,
developed by using proven best practices, encourage and provide a platform for positive,
constructive feedback. This structure helps managers reaffirm expectations and provides
employees with goal-oriented objectives that translate into specific, achievable actions.
When KPISOFT templates were adopted by a leading Asian multinational corporation
(MNC), the brand was able to achieve an 85% positive feedback benchmark in all
employee surveys.
Using Collaborative Conversations as Coaching Opportunities
By using a performance management platform with coaching templates, consistent
processes make it easier for reviews to meet four of the key pillars of strong performance
management: alignment, coaching, collaboration, and calibration.
Best Practices templates like ARROW and GROW, provide a variety of questions
designed to start meaningful conversations between managers and employees. Although
communication is something we all use in our daily workplaces, it is often difficult to

4. come up with the right set of questions to address performance with employees who have
their own unique competencies, skills and performance ratings. Using questions from the
templates is designed to be similar to having a quick handy database of questions at your
fingertips.
Click the image to download a Sample of the GROW and ARROW templates available in
the KPISOFT
Performance Management platform.
Alignment is more than just streamlining the process. Review templates can be used to
discuss multiple metrics throughout the year, linking employees to Key Performance
Indicators (KPIs) relevant to the specific business goals and organizational strategies.
Coaching on-the-go through a digital review process ensures that physical barriers don’t
prevent the process from continuing. KPISOFT provides multiple tools to facilitate the
interaction, allowing organizations to have performance data available in real-time. The
coaching experience is reinforced by the consistent interaction resulting from the use of
template questions that help keep performance goals in a positive light. This provides
management with the ability to ask the right questions regarding performance concerns
that could create morale issues if not addressed at the onset.

5. Collaboration of the data using a centralized reporting system allows HR and
Management to create a 10,000-foot view of their organization. Platforms from KPISOFT
facilitate analysis that can lead to better data-driven business decisions and insights.
One benefit of a single platform is that it provides a more holistic evaluation of your
workforce. Ranking, grouping, and sorting functions that critique the workforce serve as
tools available to look for areas of improvement, areas of best practices and areas of
progress.
Simple sharing of reviews and information with appropriate supervisors provides HR
professionals and managers with the ability to check-in and understand employee
performance changes, improvements, and newly identified needs. Creating
standardization across all processes allows calibration to occur…..no matter how many
employees, how many departments or how many locations.
Calibration is essentially the ability to rank groups based on data, independent of the
individuals who take down that information. An easier, more effective review process is
possible even when there is turnover in all areas of management, thanks to a system that
maintains information and uses data to track goals and progress, meaning there’s always
a reference point.
KPISOFT offers stakeholders, shareholders and executives the entire scope of visibility
necessary to manage change, capture market share and yield a much greater ROI. If your
company wants to achieve this type of success, take the leap and join the new
Performance Revolution.