Why Performance Management Matters

Performance management is a continuous, two-way communication process between managers and employees. It ensures that individuals stay aligned with strategic company goals, grow professionally, and remain engaged.

✨ Benefits

  • Aligns individual performance with business goals

  • Provides a foundation for promotions, transfers, or exits

  • Avoids escalation into PIPs (Performance Improvement Plans)

  • Enhances communication and effectiveness

  • Identifies growth opportunities

  • Boosts employee retention

Process

Performance management is not a once-a-year task — it's a continual journey composed of:

  • Prompt feedback, coaching, and development (ad hoc)

  • Weekly 1:1s with managers

  • Formal reviews and engagement surveys twice a year

  • Real-time feedback and goal updates ongoing

Q1

Q2

Q3

Q4

Jan

Feb

Mar

Apri

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

360 Performance Review

x

x

Comp

x

x

Dev

Engagement Survey

x

x

Growth planning

x

x

Stay interviews (not yet implemented)

x

x

Annual strategy setting

x

x

Quarterly OKR

x

x

x

x

Recurring 1:1 Meetings (Continuous coaching)

x

x

x

x

x

x

x

x

x

x

x

x

Real-time feedback

Ongoing

Update goals & growth plans

Ongoing

360° Performance Reviews

Twice a year, we conduct formal performance reviews using a 360° methodology involving:

  • Self-assessment

  • Manager reviews

  • Peer feedback

  • Direct reports feedback (upward)

Each cycle follows three steps:

Performance review steps

  1. Preparation
  2. Conversation
  3. Follow up

Writing a self review

Our performance reviews usually consist of the following questions:

  1. What behaviours or actions should this team member CONTINUE to do?

Here’s some examples:

  • Something that works well and benefits the person, team, or MOSTLY AI;

  • Positive attributes;

  • Specific skills.

  1. What could this team member START doing; and why would it be beneficial?

Here’s some examples:

  • Something that would benefit the person, team, or MOSTLY AI;

  • A new skill to add to the set;

  • A new positive behaviour.

  1. What behaviours or actions should this team member STOP
    doing; and why would it be beneficial?

Here’s some examples:

  • Something that is a waste of time;

  • A task that should be handed off;

  • Things that aren ́t working;

  1. What are 2-3 things this team member should focus on in order
    to continue developing in their career and support MOSTLY AI's
    goals?

  2. Performance rating (from 1-5).

  3. An open question for team members to address any other topics.

Below is an example of a self review completed by an (imaginary) AI Engineer:

Reviewing others

An effective performance review will help Mostlies identify their growth opportunities and potential areas of improvement, whilst maintaining healthy relationships.

We win as a team raising hands so our performance reviews use the 360º feedback methodology where everybody - Reviewees, Managers, Direct reports and Peers - chips in.

Tips - when delivering constructive feedback, be honest and consider the following:

  • Don’t shy away from difficult conversations

  • Be tactful: Honesty doesn’t have to be brutal

  • Set clear expectations for both the reviewee and yourself

  • Be specific and actionable

  • Think team-first: feedback should promote growth and collaboration

  • Use the Continue/Start/Stop framework for clarity

  • Use Slack's #mostly-kudos-and-tacos channel for instant praise

Visibility of assessments

Visibility for HR

Visibility for the Manager

Visibility for the Reviewee

Assessment result

Name of the author

Assessment result

Name of the author

Assessment result

Name of the author

Self-assessment

Immediately, once completed

Yes

Once the Manager review is completed

Yes

Manager assessment

Immediately, once completed

Yes

Once the Manager shared it

Yes

Assessments of direct reports

Immediately, once completed

Yes

Immediately, once completed

Yes

Upward feedback (aka “Assessments of direct reports”)

Immediately, once completed

Yes

Shared in a non-identifiable way

Peer assessments

Immediately, once completed

Yes

Immediately, once completed

Yes

Once the Manager shared it

Yes

Performance Calibration

5 - Superb

4 - Exceeds expectations

3 - Consistently meets expectations

2 - Needs improvement

1 - Needs strong improvement

TL;DR

  • Consistently exceeds goals and performance standards

  • Consistently presents viable solutions to problems and the plan to execute the solutions

  • Consistently meets and occasionally exceeds goals and performance standards

  • Identifies problems, and frequently presents viable solutions to problems (May require some coaching to determine the appropriate solution and the plan to execute the solutions)

  • Consistently meets performance standards

  • Identifies problems, and occasionally presents viable solutions to problems (May require some coaching to determine the appropriate solution and the plan to execute the solutions)

  • Inconsistent performance and does not meet all goals and performance expectations

  • Requires close supervision to achieve some work responsibilities

  • Does not complete daily work responsibilities in a consistent manner

  • Requires substantial supervision to achieve any work responsibilities

In detail

  • Routinely demonstrates a willingness to complete work that may be out of scope of their regular responsibilities

  • Consistently volunteers to take on new tasks and/or initiatives and sees through to completion without the need for direction and with little to no coaching

  • Effectively handles multiple priorities

  • Consistently looks for process improvements and development opportunities for self, the team, and the department

  • Consistently demonstrates exceptional customer service

  • Is always willing to lead change, and help others through change

  • Consistently seeks out constructive feedback and opportunity for improvement and development

  • Consistently demonstrates leadership among peers and colleagues

  • Consistently maintains a positive and professional manner when under pressure or in stressful situations

  • All competencies have been demonstrated or developed in an outstanding manner

  • Often demonstrates a willingness to complete work that may be out of scope of their regular responsibilities

  • Consistently demonstrates exceptional customer service

  • Is able to handle multiple priorities

  • Is open to implementing process improvements and often suggests process improvements and development opportunities for self, the team, and the department

  • Is open to change and maintains a positive attitude through change

  • Openly receives constructive feedback and opportunity for improvement and development

  • Consistently receives positive feedback from customers and colleagues

  • Often demonstrates leadership among peers and colleagues

  • Often acts as a peer mentor and coach

  • Maintains a positive and professional manner when under pressure or in stressful situations

  • Relevant competencies have been satisfactorily demonstrated or developed

  • Occasionally demonstrates a willingness to complete work that may be out of scope of their regular responsibilities

  • Is able to handle multiple priorities with limited direction

  • Is open to implementing process improvements and often suggests process improvements and development opportunities for self

  • Is open to change and maintains a positive attitude through change

  • Openly receives constructive feedback and opportunity for improvement and development

  • Consistently receives positive feedback from customers and colleagues

  • Occasionally acts as a peer mentor and coach

  • Maintains a positive and professional manner when under pressure or in stressful situations

  • Most of the relevant competencies have been satisfactorily demonstrated or developed

  • Inconsistently contributes to solving problems

  • Occasionally looks for reasons why work or goals cannot be accomplished rather than looking for ways to complete the work

  • Inconsistently demonstrates exceptional customer service

  • Occasionally has difficulty managing multiple priorities

  • Occasionally has difficulty handling change and may reject ideas without due consideration

  • Not always open to constructive feedback and at times may place blame elsewhere

  • Infrequently receives positive feedback from customers and colleagues

  • Occasionally has difficulty maintaining a positive and professional manner when under pressure or in stressful situations

  • Some of the relevant competencies have been satisfactorily demonstrated or developed

  • Does not adhere to department policies and expectations

  • Is unable to recognize problems

  • Looks for reasons why work or goals cannot be accomplished rather than looking for ways to complete the work

  • Provides an inconsistent level of customer service

  • Rarely demonstrates the ability to handle multiple priorities

  • Is not open to change and often rejects ideas without due consideration

  • Reacts defensively when receiving constructive feedback and often places blame elsewhere

  • Infrequently receives positive feedback from customers and colleagues

  • Is unable to maintain a positive and professional manner when under pressure or in stressful situations

  • A number of the relevant competencies have not been demonstrated or developed

Optional: Skill Will Matrix

Managers can also use the Skill Will Matrix to further reflect on the reviewee’s performance and next steps. This is a powerful team management and leadership tool that allows Managers to make an initial diagnosis of a person’s will (willingness to perform) and skills (competence to perform).

Tips on how to deal with each scenario:

High will / high skill: Delegate/Empower

  • Provide freedom in job methodology

  • Communicate trust and recognition

  • Develop stretch goals, broaden responsibilities, treat as “partner”

High will / low skill: Guide/Coach

  • Reduce risks, obstacles, constraints

  • Provide tools, guidance, coaching, feedback upfront

  • Relax control as progress is shown

Low will / high skill: Excite/Motivate

  • Identify reason(s) for low will

  • Develop intrinsic motivation, incentives and value alignment

  • Monitor and provide recognition to reinforce positive behavior

Low will / low skill: Direct/Supervise

  • Brief clear, identify motives, develop vision for success

  • Structure quick wins

  • Supervise with frequent feedback and clear expectations

For a more detailed explanation of the Skill Will Matrix, check here.

Coaching

GROW is a simple framework to teach managers about coaching conversations. This model stresses the importance of adapting and flexing coaching styles based on the team member’s needs and receptiveness.

Giving Feedback

Giving feedback can be a scary process which makes it hard to do. This is because there are fears of damaging the relationship, being wrong, losing face or hurting the person. Holding back on providing feedback because you feel it isn't your place (if you are a peer) or believing it won't make a difference are also some reasons why we hold back.

The consequences of holding back can have a significant impact to MOSTLY´s culture. Patrick Lencioni, in his book The Five Dysfunctions of a Team (2002) cites the following five consequences:

  • Inattention to Results

  • Avoidance of Accountability

  • Lack of Commitment

  • Fear of Conflict

  • Absence of Trust

Elements of good feedback

  • Timely: Employees must receive the feedback as close to the event as possible.

  • Candid: Providing candid feedback means not being afraid to give your honest and constructive opinion on something, such as the performance of an employee or co-worker.

  • Specific: Feedback must be concrete and relate to a specific goal/situation.

  • Actionable: Effective feedback not only provides guidance to help an employee perform tasks correctly, it also clarifies expectations, builds a person’s confidence, and fosters trust between a worker and the manager.

  • Make it safe: Feedback should be presented in a positive, tactful and non-threatening manner. The employee providing feedback should remain calm and professional throughout the process. Additionally, feedback should be provided in the most appropriate location. For instance, any negative feedback should be given in private.

Cross cultural feedback

Could the individual’s background affect the way they prefer to receive feedback?

Team members from many different cultures and backgrounds might respond to things differently. You may need to adapt your tone and style according to the individual and the relationship you have with them. Some things to think about are:

  • Do you need to build relationship before candor is comfortable?

  • Is their communication generally explicit or implicit?

  • Influence of hierarchy in direct feedback?

Reading The Culture Map can help you understand the communication and feedback styles of different countries. Something very useful at MOSTLY AI.

SBI Feedback Tool

The SBI method provides a simple structure to deliver actionable and effective feedback:

  • Situation: you outline the situation you are referring to, so that you can provide clear context. When and where did you observe the situation? This gives the other person a specific reference point.

  • Behavior: you address the behavior you have seen. Avoid making assumptions or subjective judgments about someone's behaviors. These could be wrong, and they may undermine your feedback.

  • Impact: you highlight the impact of the person´s behavior on you, the team, the organization