Performance Reviews and Start-Ups

21st Feb 202X, is one of our office days, at 4:30 PM in our garden room, I am having a weekly chat with one of our shareholders in my previous company. They simply asked me - Anjuli, do we have a rating system in performance reviews? and my answer is “not yet”. Then we discussed how to make the review system more constructive, and what can be done to make it easier/more understandable and viable in our fast-growing startup. We ended up this meeting with some takeaway thoughts but I was stuck on a point - "rating system in Start-up, and how to make it simple, yet effective?

How can I make it fair, transparent and achievable as all of us are juggling more than our role right now, there are zillions of times when we go above and beyond because it's a business requirement. We are more agile than any regular start-up, and how can I add value to the whole system literally?

It's also not like we have nothing in place, a year before we introduced the SMART Goals setting process, half-yearly reviews and monthly check-ins, and the purpose of these systems was:

• to help develop and grow your team members.

• to help organisational effectiveness

• to recognise your high-potential people

• to acknowledge and reward high performers
  

Studies say that the ability to effectively self-evaluate, helped by consistent feedback cadence, makes people 10 times more efficient. Another research conducted in 2015 states a direct relationship between Performance Appraisal and organisational effectiveness, However, the positive results can only be extracted if we choose the right kind of practice and keep it simple, Key is to keep it simple at this stage!

So lets discuss, the 5 Tips to make the best out of your performance reviews in your Startup.

• Planning

It goes without saying that number 1 is planning. Dale Carnegie has said, “An hour of planning can save you ten hours of doing”. Therefore, everything should be planned. Plan your strategy, meetings, and follow a meeting structure. Also, inform the employees in advance and give them time to prepare.

• Setting Expectations

Set a meeting agenda, and If your review process involves self-appraisal, provide them with the details beforehand. Keep it simple and an easy process to follow. It should be finished in two to three steps thats it. And ofcourse! this review should be well aligned with your previous/follow-up discussions.

• Clear Communication

Keep communication clear, precise and talk in plain language, and avoid jargon. You can follow a candour feedback/sandwich method. “Action speaks louder than words”. So, do not just listen to what your employees say, observe their body language. Keep a close eye on if they agree with your expectations.

• Two Way Feedback

Management must welcome feedback from their team members. This way appraisal does not feel like one way criticism. Moreover, you will be able to identify the areas for development and the need for additional support or training.

• Document the discussion

Always keep a record of your feedback and team members' responses. This also helps in following discussions and recognising the top performers.

Even though our team was small, we all appreciated the chance to find out areas that we could improve upon.

My guiding principle is continuous improvement, and I am devoted to fostering a culture of feedback. This is particularly relevant to startups, where a clear, well-structured, and documented performance feedback process can propel business growth. Simplicity and effective communication are key to achieving this goal.

Do you use a particular performance review system that is a great fit for your startup? I would love to hear about it.... post in your comments or write to me at anjulisharmahr@gmail.com