There is no magic formula for delivering performance appraisals, since each appraisal can be complex and challenging. As with other effective conversations, the performance appraisal discussion can be broken down into four parts: Find out what's going on; Determine the facts; Explore the possibilities; and Get commitment to a plan of action. The following example illustrates how a sound structure and reminders of key checkpoints and behaviors can help Cheryl (a store manager) and Dave (an assistant store manager) navigate through a performance appraisal discussion. The keys to ensuring a good start to the discussion (finding out what is going on) include the following activities:  Draw the other person out.  Communicate a clear agenda.  Ask for a high-level assessment from the direct report.  Share your own high-level assessment. Cheryl: Hey, Dave, how are you? Dave: I'm well, Cheryl. Busy! The focus event is my responsibility, so I've been really pushing hard to get that done. And, we've got a limited-time sale just a few weeks away, as you know. Cheryl: I sure do. And I like what I see. You've done a great job of expanding the event well beyond last year. It should drive very good revenues. Notice that Cheryl has drawn out Dave right away by asking good open-ended questions. Remember, you want to talk with your direct report, not at them. Next, she'll communicate a clear agenda. This ensures that Dave understands the outcomes she expects from the meeting and the process they will follow to obtain those outcomes. Cheryl: Well, as I said the other day, this meeting is a conversation focused on your performance, success, and development. We talk frequently, so I don't think there are any surprises here. But I do think the appraisal is a great opportunity for us to do two important things. First, look back. I want us to agree on your performance last year. And second, look ahead. I want us to agree on a development plan for you. What are your career ambitions? What specific areas can you focus on and what actions can you take to have a stronger year and get yourself closer to those ambitions. How does that sound? Dave: Sounds good. It's time to ask Dave for a high-level assessment of his own performance. Cheryl will be listening hard to really discover what is going on from his perspective. Then, she'll offer her own headlines, leaving her more detailed appraisal for later in the conversation. Cheryl: So let's look back. I read your self-appraisal, and we'll get into the details in a minute. But to start, talk me through your overall results and accomplishments. What were you most proud of, and what were the actions that got you there? Dave: Sure. A solid year mostly, from what I remember! I'm most proud of our 4th quarter results. And I think I've gotten better at focusing and executing on big sales events. That's helped me hit my goals. So, very good. In some ways, I look back and it just looks like a whirlwind. Cheryl: A satisfying whirlwind? The appraisal is off to a good start. Like Cheryl, effective managers set a clear agenda. They acknowledge the employee early, ask questions, and actively listen. This enables them to draw the employee into a productive dialogue and to minimize defensiveness and resistance. Having established what is going on, it's time to dig into the details to determine the facts. During this part of the conversation, Cheryl and Dave discuss the various sections of the appraisal form. The objective is to come to an agreement on demonstrated performance strengths and development opportunities. As the conversation continues, pay particular attention to the success factors Cheryl demonstrates. They include ways to:  Clarify success characteristics by providing job-specific examples and illustrations  Listen non-defensively to the direct report's perspective  Manage disagreements in rating by sharing observable, factual, and non-judgmental feedback  Connect success characteristics to business results  Gain agreement before moving on to the next part of the conversation Cheryl: So, Let's dig into the details a bit and look at where we agreed and differed on the ratings section of the appraisal. Dave: Okay. Cheryl: What do you see? Dave: Good agreement on most of these, including "planning and executing", and on "driving for results". The only major difference is in "connects with the customers". That surprises me a bit. I think I've gotten real strong in that area. Cheryl has given Dave time to review the ratings and to comment. By listening to Dave's surprised response and his touch of defensiveness around one particular performance factor, Cheryl is able to see the need to elaborate on this factor. Notice how she uses observations and examples to manage the ratings disagreement and reframe Dave's understanding of this success characteristic. Cheryl: Your floor presence has improved. Last year, you made consistently good choices in turning your focus from managing production, inventory, and other tasks to giving customers more attention. My rating was based on customer follow up and communication. Dave: Oh. Cheryl: It's the difference between a strength and a towering strength - behavior that distinguishes our store's service and really fuels growth. Tell me about your new employees. Are they connecting well with customers? Cheryl and Dave are gaining agreement on the facts of the situation. As this part of the conversation concludes, Cheryl makes sure that Dave sees the direct connection between his customer relationship practices and the business results he obtained. This will allow him to make adjustments that improve his future results. Cheryl: I know you can see the direct relationship between this and revenue results. That's a critical measure for our store that all of us can impact. And when your employees see you really interested in building customer relationships, it multiplies, and we all benefit. So, do we agree that customer service was strong but could have been even stronger? Dave: Agreed. That helps. I know it; it's just doing it consistently. Cheryl: Why don't you pencil in some notes around this on the Performance Development Plan. We'll want to get good and specific on developing that area further this year. This part of the conversation, where facts are determined, can be hard work. Effective managers must be able to hear the other's perspective, respectfully challenge that perspective when necessary, and provide specific, observed performance feedback. It's not surprising that this part of the conversation is likely to be the most time-consuming part of the appraisal. However, it is essential since a good, shared agreement on past performance forms the basis for a solid develop plan later in the discussion. While the first two parts of the appraisal conversation look back in order to gain agreement on past performance, the last two parts look ahead. Of course, past performance cannot be changed. Future performance can be. That is why it is vitally important to give sufficient time and attention to the second half of the performance appraisal discussion, which focuses on the direct report's development and growth. In the third part of the appraisal conversation (exploring the possibilities), the discussion centers around the direct report's desired career path and professional growth. Keeping this longer-term goal in mind, the manager and employee generate possible performance improvement actions and development activities that can drive even better results for the employee. This is an important exploratory step before committing to a final development plan. In the fourth part of the appraisal conversation, the manager and employee work together to develop and commit to a development plan of action that will help turn identified possibilities into realities.

1. After reviewing the scenario , think about one of your past performance appraisal meetings and answer the following:
2. Describe the environment (door closed; phones turned off); tenor; opportunity to respond, etc.
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4. Did your manager follow a prepared template?
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6. On a scale of 1 to 5 (5 being highest), how would you rate the communication effectiveness of the exchange? Why?
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8. What could your manager have done differently? If you could make one recommendation regarding the communication during the meeting, what would you suggest?
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