Strategic Human Capital Insights

Is it Time to Review Your Performance Review?

Like everything else in business today that is undergoing constant growth and change, the strategic review of the Performance Review process is not exempt. Too often, outdated, irrelevant performance review forms, which drive the performance review process, are kept in place without question. However, this form should be constantly reviewed since strategically-aligned performance is critical to any high-growth organization.

As often as your strategy is reviewed, that’s how constantly your performance review form should be reviewed, as well. Why? The accompanying job description will likely be evolving and/or completely changing. And as new skills are required to perform a task, these new skills and competencies must also be reevaluated.

A Typical Example 

A paper-intensive and manual ordering process has been replaced by a software application that virtually eliminates paper from the process. This will allow orders to bypass the customer service department and move directly into the fulfillment department. Only exceptional cases will now be handled by the customer service department. The clerical function of routinely double-checking for correct orders and sales tax has been replaced by software. Four things will happen:

  1. An entire routine function from the old job description will be eliminated.
  2. Employees in the customer service department will need to learn and become highly proficient with the new software application as a skill.
  3. Employees will need to learn how to resolve the exceptional issues that the software application cannot handle.
  4. With a former time-consuming function virtually eliminated, the customer service department will have additional capacity to learn new skills to handle more complex customer service issues that the department didn’t have time for before.

All four of the above issues demand a new job description to capture the new job responsibilities. In addition, as new skills and competencies are required for the role, a review of the current performance review process and form needs to be addressed to ensure that the right skills and competencies are evaluated. This review process should also determine if the recent performance review form captures the issues of company culture, growth, and accountability across functions. 

A recent review of the performance review process has resulted in the addition of the following four topics to the current performance review form:

1. Organizational Skills and Competencies

  • Enterprise Thinking
  • Customer Experience
  • Problem Identification and Problem Solving
  • Critical Thinking
  • Collaboration and Adaptability
  • Innovation
  • Accountability
    • Within the department

    • Across functional lines
  • Complex Communication Skills
    • Written

    • Oral

    • Presentation

2. Key Interactions Across Functional Lines – The Matrix Review

A shortened review form has been developed to evaluate employees who must work and be accountable across functional organizational lines.  

3. Outstanding Contribution to the Enterprise (beyond the routine job)

4. Stretch Goals for This Year


With all the change that is going on in your organization, is it time for you and your organization to review its performance review? 

What critical organizational issues should you consider as you optimize the process of managing human capital? Download our Human Capital Checklist, which highlights your organization's critical issues to evaluate regularly. You can also schedule a complimentary assessment with a member of our team.

Download the Human Capital Checklist


Topics: Human Capital, Human Resources, Human Asset Management, Performance Management

Posted by Joanne Flynn

Joanne Flynn

Joanne T. Flynn heads up the human capital advisory group, Phoenix Strategic Performance, Inc. Previously, she was a Managing Director with Phoenix Group International and was Vice President / Director of Global Learning and Development at Goldman, Sachs for nine years. Joanne works with organizations as they face global growth and competitive challenges. She works with her clients to be both externally focused and internally responsive. With her unique background, she aligns competitive strategic efforts with related internal organizational leadership challenges. With the benefit of her career-long focus, Joanne contributes the unique insight of aligning strategy to internal organizational structure and process. She focuses on human capital relative to strategic initiatives, accelerated business growth, value creation, and business development. Joanne holds a Master of Arts degree in Business Management from the University of Oklahoma. In addition, she holds a double degree major in History and German from St. Elizabeth University, as well as certificates from a variety of leading universities and professional training and development organizations. Joanne has recently published her latest book, Accelerating Business Success, The Human Asset Management Strategy.

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