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    Zappos Gets It Right – Again. How a Performance Appraisal Process Should Work


    Recognize This! – Success is about much more than results and deadlines. It’s about delivering those results within the right context of values and mission.

    If the performance appraisal as it stands today is broken, what should we consider instead? Whatever the outcome, be sure the focus of your appraisal process is based on the behaviors you want to encourage and not those you don’t.

    Zappos has this nailed in terms of the performance appraisal process, having recently switched from the traditional approach of results-based reviews to:

    Quotation“Employees would no longer be rated on how well they accomplish tasks, such as meeting deadlines or being punctual. Instead, success would be determined by how well employees embody Zappos’ 10 core values, such as delivering “Wow” service or showing humility. … Under the new values-based system, managers document how many times they notice an employee exhibiting certain behaviors, such as expressing their personality or acting humble. Henry says while the behaviors are open to interpretation, managers must cite specific examples of how an employee displays them.”

    That’s precisely the right approach in all but one facet – limiting feedback on behaviors demonstration to managers only. That’s why I advocate so strongly for strategic employee recognition solutions that let anyone recognize another colleague for demonstrating company values in their work – with a detailed message.

    If Zappos did that, think how many more data points their review process would have. Think how much more motivated their (already highly motivated) employees would be.

    Would you switch to a review process based on demonstration of your company values?

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