The Problem with Your Performance Review Feedback

By Charles S. Jacobs | February 1, 2010

Next to perhaps a layoff, a performance review is probably the least eagerly anticipated event in the office, both for the manager and the employee. No one enjoys giving difficult feedback or receiving it. Worse yet, studies have shown that reviews rarely result in improved performance.

While positive feedback is enjoyable, it doesn’t improve performance because we’re internally driven to do the best we can. Negative feedback either has no effect or makes performance worse.

According to brain science, the reason is that rather than record our experience of the world, our minds create it. Each of us has our own unique version of events. Managers tend to see things one way and employees another, particularly when it comes to shortfalls in performance and the feedback we use to address it.

Here’s how it works. Over our lifetimes, each of us builds up a self-image, and a positive one is critical to our well-being. Feedback in conflict with it creates an uncomfortable situation psychologists call cognitive dissonance. We are then motivated to do everything we can to reduce the dissonance, and we take the path of least resistance.

While we could admit we’re just not as good as we thought we were, it’s much easier to rationalize or discount the feedback instead. So we either blame the shortfall in performance on factors beyond our control, like defective customers, or we discount the source of the feedback. We are not the problem, we reason, but our bosses.

So the effect of the manager’s feedback is not at all what is intended. For example:

    You say: “This review is an opportunity to offer you a little feedback to help you improve.”

    Your employee thinks: “This review is an opportunity to blame your failings as a manager on me.”

    You say: “Your performance is not meeting expectations in this area.”

    Your employee thinks: “God couldn’t meet your ridiculous expectations.”

    Even just a seemingly objective observation doesn’t produce what’s expected.

    You say: “You didn’t meet your sales goals for the year.”

    Your employee thinks: “How could anyone sell such lousy products?”

    Nor does the discussion of the objectives for the following year work any better.

    You say: “Here are your goals for next year.”

    Your employee thinks: “Once again, I’m being set up to fail.”

When salary is discussed in the same meeting as performance, the employee hears even less of what’s being said. They’re focused on what’s important to them, and that’s their salaries.

The only solution is to turn management on its head. Overcome the perceptual conflicts by reversing the roles. Let the employee drive the discussion by asking, rather than telling, when it comes to both performance feedback and goal setting.

Have the employees do their own appraisal prior to the review. Then start the discussion not with your evaluation of their performance, but with the question, “How did you do last year?” Questions force people to come to terms with what is being said, so they avoid the problem of misinterpretation.

Where there are shortfalls, ask the employees to come up with ways to address them. Not only will they have some interesting ideas, they will be far more willing to own them and take responsibility for their success. The same psychological dynamic holds when employees generate their own objectives.

This isn’t turning the asylum over to the inmates. Whether it’s performance evaluation, development plans, or objectives, it’s still your prerogative to decide if they are adequate. When you make your decision, however, it only makes sense to incorporate the employee’s view.

Not only does this leverage the way the mind works, it’s a much easier and less stressful way to manage. The responsibility for managing performance is placed where it belongs — on the employee. The manager is no longer the driver, but the coach.

But you can’t ask questions the way a prosecutor cross-examines a hostile witness. The employee will become even more defensive. Since the tone of voice and body language must be in sync with the words, you must really believe your role is to coach your people to success. There’s no way to fake it.

While this approach will work with the overwhelming majority of people, there are some that just won’t own up to their responsibilities. Should you encounter one, you then need to deliver a straight message, but only as a last resort.

This doesn’t mean that you don’t hold people rigorously accountable for results. In fact, it’s much easier when they’re the ones setting the objectives and evaluating performance. But sometimes as managers, the best we can do for people is to give them the opportunity to pursue career options elsewhere.

Charles S. Jacobs is the founder of the Amherst Consulting Group, founder and managing partner of 180 Partners, and the author of “Management Rewired: Why Feedback Doesn't Work and Other Surprising Lessons from the Latest Brain Science.”

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Talkback Most Recent of 62 Talkbacks

RE: The Problem with Your Performance Review Feedback
This one was quite useful but i need to ask one thing.
Lets say an employee rank him self 7 out of 10 in punctuality, but manager thinks he was 5 out 10. How can a manager (as a coach) counter that?
In a typical working environment where old management style prevails, agreeing on employee`s feedback and not questioning it is a way too difficult. Any suggestions ?
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hiraabro
02/01/2010 01:51 AM
Make it measurable
A report with the punctuality should be the arbitrator in this case.
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HimaTech
02/01/2010 03:15 AM
RE: The Problem with Your Performance Review Feedback
Hi there,

Ratings are at best arbitrary and at worst, harmful. When looking at a scale of 1 - 10, I would challenge anyone to tell me the difference between 5, 6, and 7 in any meaningful way. If you have scales, have really simple ones. 1,2 and 3 are enough. Does it well, does it but needs development, poor. However, scales are not the issue. Set a clear and agreed standard for punctuality and manage against it. Also punctuality is more black and white than most people management issues! Either someone is at work and ready to perform their duties on time or they are not.

In my experience rating debates happen because the rating is linked to pay / benefits. yYou must divorce the two. Have pay reviews and performance reviews as far apart as possible. If someone knows the rating influences pay, they will not be open or honest. This then becomes a rating negotiation and has little to do with performance improvement.

Peter Fullbrook
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Peter Fullbrook
02/01/2010 04:56 PM
RE: The Problem with Your Performance Review Feedback
Before founding my business I worked as a mgt consultant specializing in creating strategic plans for organizations of all sizes. What we found was that when leadership involved employees at all levels in the creating of the organizations strategic plan, or it's annual update, then these reviews you describe took on a whole new tone. The employee understood their role and how its results impact the whole organization. Reviews turned into brainstorming events to fine tune actions, and not the typical zero-sum game which often occurs. Even involving call center employees in a multi-$b tech conglomerate netted improved metrics. The $12/hr ee's understood the strategies they helped execute. As a result the call centers metrics dramatically improved, and thus the overall org was a stronger, more solid comp.

-Dave
http://commonsoles.com
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Dave Mesicek
02/02/2010 07:32 AM
RE: The Problem with Your Performance Review Feedback
Interesting piece. I agree with the idea of having the employee rate
himself or herself; in fact, I've found that most people (especially the
creatives I work with) are more likely to under-value themselves. So a
manager needs to help bolster their confidence and find where they
think
they're falling down, and help them in those areas. Start
from a point of agreement and build from there. If your team knows
you're honest and supportive, they'll be more willing in the long run to
listen to you when you do have some constructive criticism as well.
Harley Orion
Orion Creative Group
http://www.orioncreativegroup.com
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oriondesign
02/02/2010 01:01 PM
RE: The Problem with Your Performance Review Feedback
Excellent story. Maybe reviews don't work because so
few managers were ever trained in how to conduct a
review.

Your suggestions are excellent and will reward a
studious manager who cares about reviews with better
performing employees.

In my experience when the employee's self review
and the manager's review are a close match, (little
cognitive dissonance) it is due to good work and
management and a productive relationship, and when
there is a big disparity, it is a red flag for the manager
to take a more active role in performance
management and or replacing the employee.
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gstanley75@...
02/02/2010 01:08 PM
RE: The Problem with Your Performance Review Feedback
There's an excellent (small) section on this in 'First Break All the Rules' by Marcus Buckingham and Curt Coffman.

This book focuses on strengths of employees and stops PM focusing effort on fixing competencies that they are not so good at (in my experience, workarounds fit the bill here).

As a manager, I'd be totally horrified if the performance management experience (so often imposed as a process by corporates) was feared or hated. It is an opportunity for a manager to praise and then help growth.

Oh yes, and no-one, but no-one should experience a performance review that has unexpected outcomes - if that happens, the manager simply is not communicating well or regularly enough with their people.

There are ways to manage performance where everyone is a winner - more managers need to find them.

Martin Haworth
SuperSuccessfulManager.com
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mphcoach
02/02/2010 01:12 PM
RE: The Problem with Your Performance Review Feedback
Our company handles performance reviews as described above - namely, employee's self-assessment first, followed by the manager's own assessment. I find this to be a more productive means of handling a procedure that traditionally is of little use to employee or manager, particularly when there's no follow up. As mentioned above, it does put you more in the "coach" chair vs. manager, while also allowing the employee more ownership of their role and any changes that should be made.
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jason_asch
02/02/2010 01:15 PM
RE: The Problem with Your Performance Review Feedback
I enjoyed this article, but feel a little hamstrung as my company espouses a "pay-for-performance" model. We have a yearly review that is absolutely tied to performance. Our employees already do self-appraisals and then managers are responsible for drafting manager feedback.
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charles.roberts
02/02/2010 01:21 PM
RE: The Problem with Your Performance Review Feedback
Pity the middle manager. His/her job is to convince subordinates of the wisdom of the people higher up the ladder, and therefore make it seem sensible to work harder to make the system operate at all. Unfortunately, that argument is often obviously preposterous. Little wonder, then, that performance reviews become such a headache.
The only way out is to fundamentally change the conversation.
-Chris
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simpsonBnet
02/02/2010 01:24 PM
RE: The Problem with Your Performance Review Feedback
I worked in American corporations for 30 years & never had a performance review that made sense. These companies always imposed caps on merit increases, and they had fixed budges for merit increases. So the line managers responsible for dishing out performance reviews always had to make the reviews match their budgets and their quotas for merit salary increases spread across the team or department.

This was most telling on years when the company was in the dumps and there was a salary freeze. Then the managers would get permission to give what they described as 'honest reviews'. Since the honest reviews would then have no impact on salaries, permission to do so was always granted. Of course this was idiotic because it revealed the performance reviews at all other times--when there were no salary freezes & merit increases were on the line--to be concoctions of the managers grading on a downward curve.

Useless, but much worse than that. Performance reviews were, in fact, the Big Lie perpetrated by management.

And then there was this item in one performance review I was given: The written review included a comment that I made my work--challenging work that was accompanied by high expectations--seem too easy, and that was a bad thing--it was a negative on this review. I protested and this wording was removed, but its removal did not result in a higher merit increase, it just eliminated evidence of the manager's downplaying my performance to avoid paying me more money, which was the real objective.

I find most of these kinds of discussions on BNET to be Pollyanna-ish in their assumptions of how corporate management. There is little I see here that I recognize in MY corporate worlds.
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tramky
02/02/2010 01:25 PM
Win-win, but avoid Obscure
Excellent advice.
Would only suggest that it is the boss's responsibility to assure that the employee will walk out the door knowing exactly what the boss wants and how the boss feels about it.
Sometimes the boss becomes so sensitive and diplomatic as to be obscure. To me, that's worse than being direct, as the employee can be set up for failure without knowing why, or knowing how to succeed.
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IMLaughlin
02/02/2010 01:26 PM
RE: The Problem with Your Performance Review Feedback
I agree with this style of handling performance reviews; however, if the manager handling the review is "A hole" all year.. no matter what postive comments or feedback the manager gives it will not be received by the employee as helpful.
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cjones870
02/02/2010 01:30 PM
RE: The Problem with Your Performance Review Feedback
Asking an employee 'how they did last year' can be perceived by the employee as an indicator that their boss does not really know what the employee has achieved over the period, that the organisations performance system does not capture results of the employee, that the boss does not really have the ability to benchmark the employees performance against others, and that the boss is not qualified to rate an employees performance. Bosses beware. Employees are awake to this trick.
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robgmackay
02/02/2010 01:31 PM
RE: The Problem with Your Performance Review Feedback
Have really, REALLY tried to set sales goals for a group of experienced, smart, smooth salespeople, based on their sugestions?
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mmello
02/02/2010 01:37 PM
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