If you haven’t done so already, read the Business Insight section of today’s Wall Street Journal. Look for the article titled Get Rid of the Performance Review! by Samuel A. Culbert.
Click here to read the article on the WSJ.com website -OR- click here to view it on the MITSloan Management Review.
Dr. Culbert, a professor of management at the UCLA Anderson School of Management, writes about putting an end to formal performance reviews because they “destroy morale, kill teamwork, and [hurt] the bottom line.”
Performance Reviews are a Time Sink
Think about this, too: If you are an adviser of a medium-size wealth management firm with a dozen or so employees, how long does it take to prepare for, administer, and follow up each performance review? Multiply that time by each employee for which you directly provide a review. Can you think of other ways to spend that time?
Perhaps you would use that time to market your firm through activities outside the office. You can host a recognition event for loyal clients, or perhaps a welcoming event for new clients. You can provide examples of your best planning work to all staff as a training exercise, but also in an attempt to standardize your firm’s financial planning processes.
“Previews” as an Alternative
Dr. Culbert provides a brief overview of the practice he calls “previews,” the replacement to the traditional performance review. Ongoing previews where both parties are on the same page with cooperative interests in mind not only save time, but also mitigate the inherent negatives brought about by performance reviews.
Try It, You Might Like It
“But Bill,” you might say, “this will never work in my practice.”
I ask “Why not?” What if you put an end to formal performance reviews and embraced Dr. Culbert’s previews? Can you imagine what your firm might then be like? Where does it say that wealth management firms must adhere to the time-honored traditional practice of sitting down with employees once a year (if you’re able to keep on schedule with all employees) and rate areas of performance on a scale of 1-5?
Here is an opportunity to innovate in the way your firm acknowledges the success of its employees. Abandon the time-consuming reviews, align interests with employees, and roll out a preview process.
Oh, and if you’re currently following a process similar to Dr. Culbert’s previews, I’d love to read about your experience in the comments below.
