Performance Reviews

by Sabrina Wang (@sabrinawangzq), CEO coach at Mochary Method

Table of Contents

Mochary Method’s Perspective on Performance

Performance review structures can be time-consuming for your managers. There are many recommendations on how to set them up at a company with varying levels of effectiveness.

In this write-up, I’m documenting anonymized case studies of three companies we coach, and how they implemented performance reviews under the Mochary Method. You can read books and articles to become masters of people management frameworks, but it’s hard to know exactly what successful companies implemented and what they learned. That is one of Mochary Method’s unfair advantages: we get detailed information on what the fastest-growing companies (Coinbase, Plaid, Brex, Scale, Reddit, etc.). And we are working hard to share that with you.

Mochary Method has a philosophy of performance review is centered around frequent feedback in 1:1s. If your managers are giving clear feedback on a weekly to biweekly basis, it’ll be far more efficient than running quarterly performance review cycles. You’ll also see more incremental improvements from your employees.

❌ Problems with quarter performance review cycles

• It takes a lot of time for managers to recall and write feedback for their direct reports that reflect the entire quarter.
• Feedback will get lost or forgotten, therefore not giving employees more opportunities to improve.
• Critical feedback could take up to a quarter to be communicated. High performers don’t get the recognition and motivation frequently. Low performers grow slower.
• There will be less mastery of the skill to give and receive feedback across the company.

✅ What do you need to set it up?

• First, set up the Mochary Method 1:1 process. (1-1 Template and Instructions) This will provide you with the context, cadence, and written documentation for frequent feedback. In these 1:1s, mutual feedback is a necessary step at every meeting.

• After 1:1s are implemented, use the Feedback doc and provide Absolute Feedback to your direct reports each time. It’s critical to give Absolute Feedback versus other kinds of feedback (emotional, relative, etc.). Absolute feedback gives clear communication to the employee on how they’re performing. It provides you with a common measurement for feedback across the entire company. There is little room to misunderstand the context of your feedback. It’s also natural for you and your direct report to discuss how they can improve that absolute score.

  👉 Learn more about Absolute Feedback

  People also need to know where they stand on an absolute basis. Do not wait until year-end Performance Reviews. Most people have constant anxiety when they aren't sure where they stand. Giving absolute feedback regularly (at least monthly in a 1-1) will eliminate this anxiety. The bad news is less anxiety-inducing than no news.

  To give it, state:

  1. Your current rating for your job function, 1-5, is …
     1. 4-5 is above expectation
     2. 3 is at expectation, and you can outperform by following next-level guidance.
     3. 2 is below expectation, and you can quickly improve with next-level guidance.
     4. 1 is far below expectation. I am now putting you on a written Performance Improvement Plan.
  2. What you did that I liked is ...
  3. What you need to do to get to the next level is …