A More Valuable Alternative to the Annual Review
Patty McCord (https://www.linkedin.com/in/pattymccord/) is a Silicon Valley human resources veteran who worked for iconic Valley startups such as Seagate, Sun Microsystems, Borland, Pure Atria and, most famously, Netflix. Joining Netflix within a year of its founding, Patty assisted CEO and Co-founder Reed Hastings to create a culture of accountability, performance, and success that is documented in Patty’s HR “tome”, Powerful (1). In Chapter 8, Patty eviscerates the annual review as too rigid, time-consuming, costly, and tardy. It demoralizes and penalizes workers for issues that happened months before the annual review, issues that should have been remediated at the time of occurrence. As a consultant after departing Netflix in 2012, Patty’s favorite question about the annual review process is, “Do you have any proof of the value of the review process to your business?” She concludes her musing noting that vanguard companies have “accelerated” the annual review process with GE at the margin, essentially providing real-time feedback to its employees.
FrameWork is the platform of continuous worker/manager input and worker/manager feedback. Think of Framework as a continuous feedback loop. When your subordinates or you and your manager jointly make changes to any process or protocol (engineering, finance, IT, marketing, product management, project management, sales, support, etc), Framework algorithmically measures the value of this new work to ensure it’s higher than your previous process. Timely discussions about outcomes are referenced to the actual work performed and the use of your talent or the talent of each member of your team. The incremental time burden on each worker and manager to input their feedback into Framework is measured in minutes on a desktop or mobile app. FrameWork’s elegant design allows you to control the frequency of the feedback loop. Reviews can be scheduled or initiated by either the employee or the manager any time there is a need to communicate: daily, weekly, monthly, quarterly. Your choice.
FrameWork is objective, eliminating memory biases that inherently distort an annual review such as confirmation bias, recency bias, illusory correlation, leveling/sharpening, and mood congruent memory bias. FrameWork avoids loss of productivity due to annual review anxiety imposed on the preparer and recipient. FrameWork’s design increases productivity and engagement for employees and profit margin for the enterprise.
- McCord, Patty. Powerful. Silicon Guild. 2017