What do your employees think about annual reviews? Do they view them:

1. With enthusiasm as a vital tool for their professional growth and satisfaction OR
2. With trepidation as an obstacle standing between them and a raise?

Are your performance management policies and procedures primarily geared toward:

1. Developing exceptional performers OR
2. Keeping your company compliant and out of hot water?

If your company is like a lot of companies I’ve seen, you probably picked #2 in both cases. Far too many companies do what they think they are supposed to do when it comes to performance management, but accomplish absolutely nothing when it comes to improving performance. 

Imagine hiring your favorite niece, not a greenhorn, but someone you would really like to see learn the business and thrive. Think about the things you would do to help her succeed. Think about how you would teach her and how you would give her feedback about what she is doing well and what she might want to try doing differently. How you would look for new responsibilities that might be a good fit for her talents. How you would go about setting goals, celebrating her successes, and switching things up if her natural inclinations weren’t a good match with some of the responsibilities you had chosen for her.

Now think about your performance management system. Is it what you would design for your niece or other exciting up-and-comers? Does it set them up for maximum success?

If you aren’t confident that every employee is getting the treatment your favorite niece deserves, here are three important questions you should plan to answer in 2013:

• What are you doing to help your employees excel?
• What is hindering their growth and success?

There are few things more important to your organization than successful, growing, energetic, happy employees. And unlike the economy, this one is in your control! Don’t leave it to chance!