Appraisals, the GE way

During our five years at GE, Chad and I went through a rigorous appraisal process. Through open, honest and frequent feedback we learned a lot about ourselves and about how others view us. A key aspect of the process was that our managers and mentors actively supported our development on a daily basis, there were no surprises during formal reviews. It is the only GE practice that we copied into our new organization in its entirety. Startups don’t usually have rigid processes, but this is one that we think other startups owe to their teams and themselves. So here is how it works:

Step 1 – One manager talks with everyone on the team about the person being reviewed

Step 2 – One manager writes up a review based on 5 criteria:

Critical thinking – Clear thinking, problem solving, creativity
Expertise – Knowledge in a specific practice area, technical skills
Communication – Able to communicate in a clear, concise, respectful and persuasive manner
Execution – Getting stuff done, fast. Completes what they say they’ll complete, when they say they’ll complete it
Leadership – Autonomy, being a positive/motivational force on the team, mentoring others

The key in the formal write-up, is that each area must include at least one positive observation and one “development opportunity.” For each comment, specific real world examples are required. For every development opportunity, the manager must come up with an action plan for the person to improve. Its the manager’s responsibility to help the person improve through continuous coaching.

Step 3 – All managers discuss and tweak the appraisal and decide how to deliver it effectively.

Step 4 – The appraisal is delivered face-to-face, and ample time is given during each portion for a discussion. Points are not belabored, each development opportunity is delivered candidly. How an appraisee receives and acts on feedback is extremely important. If they are extremely defensive, or get upset, this becomes a serious development opportunity.

Step 5 – The entire team reviews the managers using the same process from steps 1-4. A manager always delivers the feedback to the other manager based on the team’s consensus. This ensures the team is honest with their feedback and not afraid of retaliation.

The entire process is repeated on a regular basis, usually every 2 months. Do you have some questions on how you can better integrate this process into your team? Shoot us an email and we’re more than willing to give you some forms and advice.

Appraisals, the GE way