What Constitutes a Good Performance Review?

For the Performance Review itself to be effective, there are five elements that must be present.

Define goals that are clear to everyone
For individuals and teams to be successful, they must know how they are measured and what the specific goals are related to each of these measurements.
Are goals clearly defined in your area?
Clear understanding of the difference between each step or grade in the measuring process
This element of the Performance Review is critical. Whether you use a 1-5 scale, 1-4 scale or some other scale, you and your staff must understand the behavior or measurements that distinguish one step or grade from the next.
Is everyone clear on the behavior and measurable goals that define each step or grade on the review form?
Regular ongoing review of performance throughout the year
Reviewing performance is a process not an event. This means that performance must be discussed throughout the year, not just once a year.
Do you review performance throughout the year in a structured way? Why?
Accurate feedback on performance
The leader must keep accurate documentation so that he/she can give accurate feedback on performance rather than just his/her “opinion” about the performance of the person or team.
Do you record both positive and problem performance throughout the year?
Dialogue
Dialogue means that everyone is talking. The leader should spend no more than 50 percent of his/her time talking. The remainder of the time should be spent asking questions and listening.
What percentage of the time do you spend talking?
What percentage of the time do you spend asking questions?