The annual review is fundamentally broken: it's high-stakes, low-frequency, and based on weeks-old memories. The replacement isn't more reviews — it's more frequent, lower-stakes signals.
Continuous over annual
Move from one big review to monthly 1:1 check-ins, quarterly goal calibration, and an annual summary that aggregates the data already captured.
Goals that ladder up
Every individual goal should connect to a team goal, which connects to a company outcome. If that ladder breaks anywhere, you have a clarity problem.
Calibration without bias
Manager scores drift. Calibration sessions where peer managers compare ratings keep the system honest, and protect employees from the lottery of who they happen to report to.
Recognition closes the loop
Performance systems that feed recognition (private kudos, public shout-outs, or compensation adjustments) get used. Ones that don't, atrophy.