The verdict is in: Performance reviews are out. What will replace them?

by Bernadette Doerr and Jessica Reif

Traditional performance management — the annual exercise of a manager reviewing the contributions of his or her employees and then sitting down with each for a taxing conversation — is dead. R.I.P.

Last week, the Wall Street Journal reported on GE’s recent move to ditch the traditional performance review system. They are not alone: in just the last two years, dozens of large companies have announced that they are abandoning their existing performance management systems (Accenture,Deloitte, Adobe, to name just a few). This movement has generated substantial buzz around the topic of the dreaded annual review.

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