W. Edwards Deming identified performance appraisal as one of the Seven Deadly Diseases of Management.

But annual appraisals are currently a fact of life in most organizations, in spite of their negative effects. Many companies are reluctant to give them up, because they don’t see what to do instead of the annual review.

I’ll walk through the assumptions behind performance evaluation and review, and share some of the recent research on the efficacy of annual reviews. Then I’ll offer alternatives that actually help people improve and build stronger relationships.