Companies across the United States have spent years overhauling performance processes to help employees grow, make better talent decisions, and improve results. The real test, however, is getting leaders to stick with those processes amid competing priorities.
From Annual Reviews to Ongoing Development
Traditional performance management relied on yearly reviews, static goals and post‑fact documentation. Recent research shows a shift toward continuous feedback, shorter‑term objectives, co‑created goals and a focus on future development rather than past evaluation. Yet better outcomes have not always followed.
According to a May 2025 study by Cornell University’s Center for Advanced Human Resource Studies, only one in five employees feel motivated by their company’s performance system, and just 32 % of executives say the system enables high‑quality talent decisions.
Three Ways to Support Leaders
BDO outlines three practical areas where organizations can help leaders succeed:
- Clear Framework: Provide senior leaders with a straightforward framework that defines expectations for performance development and models those behaviors within their own teams.
- Defined Actions: Identify specific actions that demonstrate a leader is developing others—setting priorities, giving timely feedback, discussing development regularly, following through on commitments, and creating two‑way feedback opportunities.
- Evaluation Integration: Incorporate these expectations into leadership evaluations so that modeling development behaviors is rewarded.
Companies that participated in a 2025 Cornell working group emphasized the importance of clear, robust goals as a foundation for effective performance management. When expectations are clear and consistently reinforced, leaders are more likely to model the desired behaviors.
New Dimensions of Performance
Cornell’s research adds emerging dimensions to traditional metrics such as individual goals, KPIs and project deliverables. These include collaboration, teamwork, customer value, employee learning, well‑being and engagement. Technology can link these new dimensions with existing measures, giving leaders a fuller picture of progress, patterns and gaps.
With better visibility, leaders can coach, develop and evaluate employees more effectively and address concerns before the formal review cycle.
The Role of AI
A May 2026 Harvard Business Review article notes that generative AI can help leaders uncover evidence of employees’ decision‑making, influence, mentoring and problem‑solving from everyday work, strengthening the basis for coaching and talent decisions.
Organizations in Cornell’s working group reported using AI platforms to track performance, manage review cycles and pinpoint areas for improvement, while stressing that AI cannot replace manager‑employee conversations.
Keeping Development Simple and Trustworthy
The same research highlighted transparency, trust and a safe environment for giving and receiving feedback as essential conditions for success. Frequent feedback should be tied to the broader review process, but the system must remain simple enough for managers to adopt.
Persistent challenges include time‑consuming processes, feedback that arrives too late, and difficulty capturing individual contributions. Gaps in managers’ coaching skills further weaken performance development efforts.
To address these issues, organizations should invest in building coaching capabilities, set expectations for ongoing two‑way dialogue, and simplify performance processes. Capturing feedback throughout the year and feeding it into the annual cycle allows continuous conversations to replace end‑of‑year reconstruction.
Bottom Line
Performance development hinges on what leaders do every day. Providing clear examples of success, better information and streamlined processes makes the job easier and turns development conversations into opportunities for employee growth, stronger talent decisions and improved business outcomes.
Original reporting: KTVZ (Central Oregon) — read the source article.
