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Home Business Leadership

Ask the Business Coach: Is the annual performance process or PDR outdated and ineffective?

March 1, 2023
in Business, Features, Guernsey, Isle of Man, Jersey, Leadership, People
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Channel Eye has joined forces with Royston Guest, leading Business Growth Coach and CEO/Founder of Pathways Global, in our column, ‘Ask the Business Coach’

The annual performance process has three primary functions: firstly, to provide feedback on an individual’s performance; secondly, to serve as a basis for modifying or changing behaviour or identifying areas of personal development; and thirdly, to provide data to managers for reward (pay rises/bonuses) and recognition (promotions/awards).

The annual performance process is central to effective management if it is done correctly.

Business Growth Pathways logoThe big three takeaways!

  1. Don’t bank feedback. Give in-the-moment feedback (or as close as possible).
  2. The annual review should be predictable; there should be no surprises.
  3. The annual review should be a summary of performance throughout the year.

Episode timestamps

  • [0.45] Managers and leaders cannot and should not ‘bank’ their feedback for one day at year-end. They should know and recognise how individuals perform throughout the year. Any developmental feedback should be given in the moment.
  • [1.30] An annual review should summarise an individual’s performance for the year; there should be a half-yearly check-in to summarise an individual’s performance at the midway point, and there should be a quarterly check-in summarising performance quarterly. Managers and leaders may also choose to complete monthly or even weekly check-ins. All these discussions and conversations should make up the annual review – hence why it is a summary of the year’s performance. There should be no surprises.
  • [2.55] If the annual review is linked to pay rises or bonuses, then a year-end process to assess their performance against metrics and behaviours is essential.

Do you have a question for the Business Coach?

Send your questions to [email protected]


Missed a previous episode? Catch-up and watch the series here.

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Royston Guest

Click here to see all of Royston's articles and here to find out more about Royston and Pathways Global

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