Your Performance Management System Isn’t Broken — It’s Just From 2003

 So let’s be honest.

There’s no chance you’re going to get a Gen Z workforce performing well in a system where dial-up and fax machines are the norm.

And yet, here we are awkwardly dragging old performance management systems into workplaces that are otherwise engaging in conversations about artificial intelligence, flexible hours, and four-day work-weeks.

So what’s the disconnect?

We have made performance a ritual. A task.

An annual meeting you schedule about as often as a dentist appointment, rather than productive feedback.

And it’s hurting everyone involved.

🔍 What the heck is a Performance Management System?

Let’s eliminate the fancy language for a second.

Simply put, a Performance Management System is a systematic way to ensure employees have:

• Know what you want them to do
• Understand how to improve
• Get recognized for doing something awesome
• Deserve support when not functioning well

Seems simple? Yes.

Is this the norm outside of this room? No.

🚨 The Current Reality (a.k.a the Mess)

• Walk into most companies and you’ll find:
• Reviews that occur maybe once a year
• Ambiguous objectives that no one can remember
• Feedback that is either sugar-coated or pointless because it’s too delayed
• Managers who are too busy or ineffectively trained in how to give feedback
• Employees Afraid of One on Ones

It’s not performance management. It’s performance confusion.

💥 Indicators That You Are in the Dark Ages with Your Performance Management Software

1. It is paper-based.
   You should not even be using a folder that says “final_final_updated_2022” or jobs in excel sheets to track performance. Seriously?
   
   
2. No one can define the goals.
   Ask your team what their actual goals are. If they offer you crickets or say, "Uhh... provide value?”, there is clarity issue.
   
   
3. Feedback is a given when someone screws up.
   Feedback should be gasoline, not a whip.
   
   
4. Everyone hates performance reviews.
   If people think performance reviews are like getting a root canal; Houston, we have a problem.

✅ What a Real Performance Management System in 2025 Looks Like

Let’s rebuild, shall we?

1. Clear Collaborative Goal Setting

Goals should never just be given down from the top without listening to your team (like a pop quiz!). Modern performance management systems involve both the manager and employee in goal creation to establish ownership, confidence, SMART goals and allowed flexibility.

2. Ongoing Check-ins

Annual judgement day’s are over.

Monthly or even weekly check-ins should be made to encourage ongoing conversations and should feel less confrontational - and more supportive. Coaching vs. grading.

3. Enabling Managers

Let’s remember managers need support too.

Put tools, guidance and space to learn, develop an evaluative feedback style and coaching abilities into their paths.

4. Recognition Built In

Don't wait for the end of the year to hold ceremonies.

Recognizing success in the moment, even small things, is extremely effective - "Hey, that presentation looked great!" goes a long way.

5. Actionable Data, Not Just Ratings

Your system should identify trends: who is getting better? where are we getting stuck?

However, it should never convert a person to a number.

🎯 Why It Matters (A Lot More Than You Think)

Bad performance management isn’t just irritating it's costly.

You lose good people. You're promoting the wrong people. 

You're muddling goals, wasting time, creating friction that puts the brakes on productivity.

What about those organizations who get it right? They:

Retain employees

Grow at a faster pace

Attract better talent

Build real trust between managers and teams

Yes, trust — something most workplaces are missing and missing desperately.

🧠 Pro Tip: Focus on Growth Not Grading 

If your Performance system feels like it is designed to catch people sleeping instead of helping them rise, it is doing the opposite of its purpose.

Consider replacing:

❌ “Why didn’t you meet this number?”

With:

✅ “What got in the way — and how do we fix it together?

 

🔚 The Final Thoughts?

If your Performance Management System was created at the same time as flip phone was prevalent, you’re not actually managing performance – you’re just managing not to fail.

And your team deserves better.

Start small. Have a real conversation. Pick one clear goal. Celebrate progress. 

Do it every time.

It is not about tech or silly corporate vernacular.

It is about people. 

It always has been.