Is the Annual Performance Appraisal Over?

An article in the Financial Times recently echoed what many organisations are already experiencing: the traditional, form‑heavy annual appraisal no longer reflects how modern teams actually perform. Increasingly, it’s frequent, human conversations — not once‑a‑year ratings — that drive real improvement.

Why This Matters

Research referenced in the article suggests only a small fraction of employees feel their performance management systems genuinely motivate better performance. Instead, organisations are moving towards continuous, “in‑the‑flow” feedback and regular, meaningful dialogue between managers and their teams.

This shift is especially important for new and emerging leaders — the people who will develop our businesses and our people into the future. Performance doesn’t improve because a form is completed; it improves because expectations are clear, feedback is timely, and conversations actually happen.

“You can collect performance data — and even ask AI to analyse it — but none of it can author the relationship.”

What Actually Drives Performance

Regular check‑ins matter more than formal reviews. These don’t have to be lengthy or complex conversations, but they do need to be intentional. A short weekly or project‑based check‑in that includes expectation‑setting and personal connection often has more impact than an annual, backward‑looking appraisal.

Many new managers underestimate this. They assume their team “gets it”, or that leadership is primarily about showing people how to do the job properly. In reality, performance conversations are about alignment, trust and clarity — especially when expectations shift week to week.

Time is frequently offered as the reason these conversations don’t happen. Yet, as highlighted in the article, Deloitte’s redesign of performance management — replacing annual reviews with near‑term “snapshots” and regular check‑ins — reportedly saved around two million hours. Backward‑looking ratings were replaced with expectation‑setting and in‑the‑moment feedback.

A Final Thought

Performance management is no longer an event; it’s an ongoing conversation. While data and AI can support insight, they cannot replace the human connection that underpins performance. For today’s leaders — particularly those early in their leadership journey — building the habit of regular, meaningful check‑ins isn’t just helpful. It’s essential.

If this has you reflecting on how performance conversations actually happen in your organisation, we’d be happy to chat — get in touch with us here.