Coaching & Developing Your Team in English

Why Most Performance Reviews Fail — And What Companies Are Doing Instead

Traditional annual performance reviews have come under heavy criticism in recent years, with many organisations abandoning them altogether. Research suggests that the once-a-year format creates anxiety, focuses too heavily on the past rather than future development, and often damages the manager-employee relationship rather than strengthening it. Companies like Adobe, Deloitte and Microsoft have moved towards continuous feedback models, where managers have frequent, informal check-ins focused on growth rather than rating performance on a scale. These conversations tend to focus on three questions: What is going well? What could be different? What support is needed? Early data suggests that employees in these systems report higher engagement and feel more supported in their development, although some managers initially struggle with the shift from evaluator to coach.

The Coaching Skill Every Manager Needs But Few Have

A growing body of research points to one specific skill as the single biggest differentiator between average managers and exceptional ones: the ability to ask powerful questions rather than provide quick answers. Many managers, especially those promoted for their technical expertise, default to problem-solving mode — when an employee raises an issue, the manager immediately offers a solution. While well-intentioned, this habit can quietly undermine an employee's confidence and ownership over time. Coaching-oriented managers instead pause and ask questions like "What have you already considered?" or "What would success look like here?" This small shift, research suggests, leads to employees who are more resourceful, more engaged and more likely to bring solutions rather than just problems to their managers in future.