![]() Adobe employees and managers had an opportunity to comment on what had and hadn’t worked before and to offer suggestions for a revised process.Īdobe replaced the annual performance review with the “ check-in,” described as “ongoing dialogues between managers and employees.” The company developed a training program with supporting documentation and videos so managers could learn the new approach, which focused on goal-setting, feedback between managers and team members, and the different frequency of the check-ins. Within days, Adobe announced that it would radically rework the annual review. That slip of the tongue dramatically expedited the original plan to brief the CEO and the executive team before making an internal announcement. As it turned out, she was badly jet-lagged after a flight to India and let the news slip to a reporter from the Economic Times of India. How the “check-in” replaced the annual reviewĪdobe’s top executive for People Resources inadvertently announced the end of the annual review. The process just didn’t match the kind of performance management the new business model required. The result was a yearly spike in turnover when both solid employees who received less than stellar reviews - as well as certified all-stars seeking a faster pace - both quit. Yet, for all the resources they invested, Adobe unintentionally discouraged good employees with its annual review process. ![]() By Adobe’s estimate, it required an astounding 80,000 staff hours just to complete reviews of every employee - and that’s before the yearly meeting to discuss performance. ![]() The people in charge of Adobe’s People Resources (the company’s name for human resources) determined the annual performance review was unsuited to the company’s work going forward.Īnnual reviews were a labor-intensive process. On a long list of what needed to change for Adobe to succeed with its strategy change was the annual performance review. The company had prospered by offering products, developed over the course of 18 months to two years, to customers who bought once and had no further contact with Adobe unless they had a customer service problem.īut Adobe was transitioning into a cloud-based software company that planned to update its offering frequently to customers who paid for an ongoing subscription. In 2012, Adobe was making a fundamental shift in its business model and offerings. Adobe’s impact on the annual performance review Ultimately, that pace has made it more challenging for organizations to meet with and review their teams every 12 months. One full year simply feels like just about the right amount of time between thorough reviews.īut for better or for worse, the pace of business has been increasing for the past few decades. Maybe it’s simply because humans, even when living in cities and working indoors for generations, still think in annual cycles. It basically worked for the era it was designed for, when product cycles were longer. ![]() Why this annual ritual persisted - especially since neither the reviewer nor the reviewed found it very enjoyable - is anyone’s guess. The annual performance review was an HR mainstay, beginning with the mass industrial employment of the past and continuing in a number of sectors until recently. Periodic conversations between employees and managers - which are an opportunity for management to hear from and evaluate employees - have largely replaced the venerable annual review. ![]()
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