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Performance Review Basics

The lightest formal feedback process that works before there is an HR function: a written, periodic, two-way account of how someone is doing against what was agreed.

Why does Performance Review Basics matter?

In a small company everyone believes feedback is continuous, and it is, right up until it is not. The failure is predictable: a person is underperforming, everyone knows, nobody has said it in a way that registered, and eleven months later it becomes a departure that surprises them. A written review is not corporate theater at fifteen people; it is the mechanism that forces the unsaid thing to be said while it is still fixable, and it protects good performers too, because praise that was never written down does not exist when promotion or compensation is decided.

What does Performance Review Basics look like in practice?

Suppose the lightest possible version. Twice a year, each person writes half a page on what they did against the outcomes agreed, what got in the way, and what they want next. Their manager writes half a page on the same questions and where they disagree. They talk for forty-five minutes, and the two documents are kept. That is a few hours per person, and it produces a record that makes the compensation conversation defensible, the promotion case writable, and the hard conversation possible without it being an ambush.

What are the common mistakes with Performance Review Basics?

  • Delivering the first real criticism in a review. A review should summarize feedback already given, not introduce it.
  • Bundling the compensation decision into the same conversation, which means nobody hears anything after the number.
  • Importing a heavyweight template from a large company, which is usually abandoned after one cycle and leaves nothing behind.
  • Skipping it for the team's strongest people, who then get no feedback at all and are the most expensive to lose.

Related concepts

  • Hiring ScorecardA written definition of what success in a role looks like, agreed before anyone is interviewed: the outcomes the hire owns and how they will be judged at six months.
  • Managing OutEnding someone's employment when the role is not working, deliberately and early, rather than waiting for it to resolve itself.
  • OKRs (Objectives and Key Results)A goal-setting framework that pairs a qualitative Objective, what you want to be true, with a small number of measurable Key Results that define whether you got there.
  • First Ten HiresThe small set of employees hired before the company has real process, whose individual judgment substitutes for the systems a larger company would use to catch their mistakes.

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