Beyond the Annual Review
As we start to think about (and dream of) the warmer spring days, I know this is a time when many organisations are preparing for their annual performance reviews. Whether your organisation conducts formal yearly reviews or takes a more frequent approach, this is an ideal time to think about how you create meaningful conversations about performance and development.
What’s Actually Happening in Workplaces?
Recent research from Deloitte shows that whilst most companies still run annual reviews, many are adding regular check-ins throughout the year. And this makes perfect sense – whether you’re sticking with annual reviews or not, what matters is having the right conversations, in the right way, at the right time.
Why Getting This Right Matters
When organisations have great performance conversations, everyone benefits. Gallup’s research shows that companies with effective performance management see nearly 15% higher profit margins. But this isn’t just about how often you have these conversations – it’s about making every conversation count.
Setting Up for Success
Successful performance management isn’t just about processes and procedures. It’s about creating the right environment – what I call a Savvy Space for great performance conversations. This is where psychological safety meets practical action, where teams feel confident having honest conversations and where continuous improvement happens naturally.
A Savvy Space emerges when people:
- Trust they can speak openly about challenges
- Feel comfortable giving and receiving feedback
- Know that their development matters
- See their leaders role modelling continuous learning
Think about your current environment. Are your managers equipped to have development-focused conversations? Do your teams feel comfortable to openly discuss their performance? Most importantly, are these conversations leading to performance improvement?
Making this Work in Practice
Whether you’re staying with annual reviews or moving towards more frequent check-ins instead, your success depends on creating the right environment. In my experience, here’s what makes these conversations work well:
1. Getting Clear on What Good Looks Like
Performance conversations work best when everyone understands why they matter. Rather than ticking boxes or following procedures, the focus should be on supporting growth and development. When managers and team members approach these conversations as opportunities rather than obligations, everything changes.
2. Helping Your Managers Succeed
Your managers need more than just a process to follow. They need practical tools and techniques for different types of conversations. This includes knowing how to:
- Make conversations genuinely two-way
- Turn challenges into development opportunities
- Give and receive feedback effectively
- Set meaningful objectives that drive improvement
3. Keeping the Momentum Going
Whether you have formal annual reviews or not, building in regular check-ins helps prevent surprises and maintains progress. These don’t need to be lengthy – sometimes a focused 15-minute conversation can be more valuable than an hours’ formal review.
What Can You Do Right Now?
As you think about your performance management approach, ask yourself:
- How do my current conversations support continuous improvement?
- What additional skills might managers need?
- How could feedback become part of daily work?
- What practical tools would help make conversations more effective?
Your Leaders Set the Tone
Your senior team plays an important part in creating the right environment. When leaders demonstrate openness to feedback and show commitment to their own development, they create an environment where honest conversations can happen.
Ready to Act?
As I said at the outset, success comes from having the right conversations, in the right way, at the right time. Whether you want to enhance what you’re doing now or try something new, focus on creating an environment where continuous improvement becomes ‘the way we do things round here’.
If you’d like support in developing your managers’ skills or creating your own Savvy Space for performance conversations, let’s talk about how we could work together through workshops, coaching, or leadership development.
Want to explore this further? Get in touch to discuss how I can help your organisation create a culture of continuous improvement.
Want to know more?
Sarah Harvey is Founding Director of Savvy Conversations Ltd and author of the highly acclaimed book Savvy Conversations: A practical framework for effective workplace relationships.
Website: https://savvyconversations.co.uk
Linked In: https://www.linkedin.com/in/savvysarah
Instagram: savvysarah