Why performance reviews don't work. What to do instead

How good are you at giving feedback to others whether in a professional setting or with friends and family?

When you offer feedback, do people move uncomfortably in their chair, or jump up and give you a big hug as a thank you?

The reality is that the latter is most common.

David Rock, Director of NeuroLeadership Institute, in a 2018 keynote at WorkHuman noted that: “feedback either does nothing, or makes things worse”. 

Why then do we insist that leaders offer feedback to their employees through performance reviews? 

Should we eliminate feedback altogether? If so, how do we continue to grow our people?

These are all good and valid questions. 

Let’s start by understanding why we don’t like receiving or delivering feedback. 

(Note: Research shows that leaders, in addition to not enjoying receiving feedback, also do not enjoy giving feedback and avoid the process as much as possible).

Our brain perceives feedback as a threat, and our brain is designed to protect us from threats. So, no matter how direct or kind you are and how much you prepare, the process of receiving feedback elicits a threat response. 

A useful model that David Rock shares is called the SCARF model. It offers a good way to understand the brain’s response via the 5 factors that elicit either a Towards or an Away response.

S: Status

C: Certainty

A: Autonomy

R: Relatedness

F: Fairness

The more that our thoughts and actions move us towards our perceived Status, Certainty, Autonomy, Relatedness and Fairness, the more our brain elicits a positive, open and calming response. 

If we perceive we are moving away from these five factors - that is, less Status, less Certainty, less Autonomy, less Relatedness & less Fairness - our brain responds negatively, closes off and stress ensues. 

When it comes to feedback, Status and Certainty are primarily at play. 

When someone offers you unsolicited feedback on your performance, (as is the case with performance reviews), your Status is threatened. 

Firstly, someone with more status (aka your boss) gives you feedback – by the mere fact that they hold a higher rank in the company, threatens your status. 

Secondly, the fact that they are giving you feedback on your performance, likely noting your strengths but also your developmental areas, increases their perceived Status and decreases yours, another threat to Status. 

The fact that the gaps in performance are being voiced and discussed, threatens your perceived Certainty as an employee with the company - that is, you more likely to doubt your longevity with the company - which again brings about an ‘away’ response in the brain.

A threat state leads to the release of stress hormones in our bodies which inhibits our cognitive functioning and closes us off.

The issue with feedback is:

  1. The feedback is unsolicited, 

  2. Feedback tends to focus on gaps rather than building on strengths

  3. Feedback is giver-driven, that is the giver of feedback is in the driver’s seat

All these bring about a threat response and puts us on the defensive.

With this understanding of the brain, it’s no surprise why performance reviews are such difficult times for teams and leaders.

So, what are you to do?

One approach discussed at the NeuroLeadership Summit was to take on more of a growth mindset approach. This involves cultivating a culture of soliciting feedback. This approach puts the receiver in the driver’s seat. 

The receiver of feedback asks for specific feedback based on the skills they want to grow, can ask whenever they feel they want/need it and can develop their own plan for growing their leadership. 

If your company is not ready to eliminate performance reviews altogether, perhaps a process that involves the employee taking the driver’s seat at gathering feedback, reviewing it and determining their own personal plan of action would be less threatening. 

This involves you asking more questions. Saying less. Facilitating the inner reflection process, rather than directing it. 

You judge less, support more and encourage a feedback-friendly culture.

This process is more brain friendly and more likely to lead to sustainable change.

All the best,

Lisa

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