Is AI the secret to better performance reviews? Spoiler: yes.

The end of the year means it’s time for performance reviews and all the preparation that comes with them.

For managers, the pressure is on to fairly evaluate reports, both highlighting wins and uncovering areas for improvement. For employees, it’s an opportunity to showcase achievements and reflect on progress, while remaining open to receiving performance feedback.

Performance reviews are a big deal:

According to Mckinsey, companies that invest in performance management systems are 4.2 times more likely to outperform their competition and see 30% higher revenue growth. But here's the kicker: too many organizations still get performance reviews wrong, which means a huge opportunity to improve.

In this newsletter issue, we’re going beyond the typical review tips. Let’s talk best practices and how AI can help streamline the performance review process for better outcomes, whether you're a manager or an employee.

4 best practices to remember during performance review season

1. Don’t skip regular feedback: Annual reviews are useful, but the magic happens with frequent one-on-one meetings. ✨ Aim for quarterly (or even weekly) touchpoints to keep feedback flowing. If you haven’t scheduled these yet, now is a great time to set up weekly or biweekly one-on-one meetings with each direct report.
   

2. Avoid recency bias: It’s easy to focus on the most recent wins (or challenges) during a performance review, but a full year tells the real story. Before your review, take time to reflect on achievements and growth from earlier in the year. If you’re having trouble remembering what was discussed throughout the year, we have a Fellow Tip for you at the bottom of this newsletter (keep reading ⬇️).
   

3. Balance “what” and “how”: This is a friendly reminder for managers to give praise on how goals are being achieved, and not only focus on the number in the dashboard. Skills such as collaboration, adaptability, and creativity (amongst others) matter just as much as results, so make sure to share positive feedback about these with your reports. 💪 And if you’re on the other side of the review, make sure to bring up these soft skills and how you applied them in your conversation with your manager.
   

4. Create developmental, not just evaluative reviews: The best performance reviews go beyond assessing past performance, they’re an opportunity to focus on your team’s future potential. For example, instead of solely rating how well an employee met their goals, discuss new skills they’d like to develop, projects they’d like to lead, or areas where they see room for improvement. 🌱

The new way to do performance reviews 🗞️

As performance review season approaches, a growing number of leaders are turning to AI-powered tools to simplify the process. The trend is driven by the increasing recognition that detailed documentation and preparation can significantly enhance the quality of performance conversations. AI meeting note takers such as Fellow and similar platforms, are gaining popularity among managers for their ability to record, transcribe, and analyze meeting data throughout the year, providing a valuable repository of insights for when performance reviews come.

Fellow Tip of the week 💡

This week, we’re spotlighting how AI can improve your review process: 

• Prep with Ask Copilot: Combat recency bias by using AI to pull insights from past one-on-one meetings. This ensures your performance reviews are not only relevant but also balanced, reflecting a full picture of progress and achievements throughout the year. 

• Stay focused: Let Fellow handle recording and transcribing while you stay engaged in the performance review conversation. Pause and redact recordings for added privacy when needed.

• Send effortless post-meeting recaps: Auto-send summaries, action items, and transcripts to your direct reports after the performance review conversation, ensuring no detail is overlooked.

Resources to get you ready for review season ✅

1. McKinsey’s guide to getting performance reviews right

2. Lenny Rachitsky on the power of planning and performance reviews

3. Shivani Berry on mastering strategic influence and tackling imposter syndrome

4. Performance Review Meeting Template

And that’s it for this issue of Fellow’s Supermanagers TLDR newsletter.

Here’s to a successful performance review season!

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Thanks for being part of our community,

Manuela and the Fellow team

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