One by one, the largest companies in the world are doing their employees and managers an enormous favor: Getting rid of the annual performance review. As one of the pioneers of recognition-based performance metrics systems, DueProps cheers on Accenture and Cisco for making the move.
Accenture CEO Pierre Nanterme said that the professional services firm, which employs hundreds of thousands of workers in cities around the globe, has been quietly preparing for this “massive revolution” in its internal operations.
“Imagine, for a company of 330,000 people, changing the performance management process—it’s huge,” Nanterme said. “We’re going to get rid of probably 90 percent of what we did in the past.”
Cisco, for long one of the foremost practitioners of performance reviews to evaluate employees, has decided to junk the practice and replace it with a new peer-to-peer feedback mechanism. The company believes this will foster teamwork and collaboration.
Francine Katsoudas, chief human resources officer at Cisco, said more and more companies were finding that their performance management system wasn't serving them well.
The list of major corporations that have had enough with the forced rankings, the time-consuming paperwork and the frustration engendered among managers and employees by performance reviews is growing. Six percent of Fortune 500 companies have gotten rid of rankings, according to management research firm CEB.
"From an employee's perspective, it's the most hated process that you have. Even leaders are saying they are not getting what they want from the system. And so, the decision that we have made, which given our scale is a very big decision, is that we're going to move away from ratings. And we're going to move away from the concept of the annual review," she said.