Performance review

What is a performance review?

A performance review is a periodic, formal assessment of an employee's results and behavior against the expectations set for the role. It usually produces a written record and often a rating that feeds pay, promotion and development decisions. The US Office of Personnel Management treats rating as one stage in a wider cycle that starts with setting expectations and continues with ongoing feedback and development.

Why it matters to a revenue leader

Sellers already get a verdict every quarter from the number, so a review that only restates attainment tells them nothing new. A useful review explains the result and names the one or two things the seller should build next. Peter Cappelli and Anna Tavis described in HBR in 2016 how many companies were moving from once-a-year appraisals toward frequent conversations about development. For a CRO who manages managers, the reviews those managers write also show their habits. Specific deal evidence tends to come from managers who inspect, and text that echoes the dashboard from managers who only report.

A testing and inspection company with 18 sellers runs reviews each January. One seller finished at 104% of quota, but 60% of her bookings came from a single renewal she inherited. Her review credits the result, then sets a goal of four new accounts in the first half so next year's number does not depend on one customer.