Is your Performance Evaluation process effective?

It’s common to hear that Performance Evaluation—or Performance Appraisal—doesn’t help anyone. And the complaints are from all sides. Both managers and employees don’t like giving or receiving them. But why is this such a painful process?

From the crew manager’s side, it’s essential to have reliable data, and inputs and outputs of the process. How can they manage a Performance Appraisal process if they can’t measure the efficiency and see the evolution of each employee?

From the employee’s side, it’s essential to understand what the company wants from them. They’re been conditioned to think of reviews in a negative light. But this is not—nor should it be—the intention of a Performance Evaluation review.

At this McKinsey report, 54% of respondents think that performance management doesn’t affect performance efficiency. This is good feedback about how the evaluations are being made.

So, the key point is to align the Performance Evaluation with the company’s culture. That’s why it’s usually created by the Human Resources department. But now that you realize the importance of evaluations and why the process isn’t clearcut, let’s explore this topic.

What is the Performance Evaluation process?

Performance Evaluation is the process to evaluate each employee’s job performance periodically, aiming to enhance results, efficiency and the overall work environment within the company.

Having a structured and efficient Performance Evaluation process allows the company to align expectations between manager and employee, and builds a road to let all workers give their best efforts to continually improve themselves.

You probably have different kinds of employees, and understanding the stage each one is in, will drive your people strategy to success. The mission of a performance evaluation is to have a clear view of where each employee of your company is as if it were on a map.

There are many methodologies to create and apply an Employee Evaluation, but it usually follows a framework. It’s crucial to be flexible and to adapt the process to your company’s needs.  

Performance Evaluations steps

The framework we usually use here at Pipefy has five main steps: self-evaluation, supervisor evaluation, feedback meeting, performance action plan and action plan follow-up. This flow allows the managers to map how the employee is performing, what points can be improved and to align expectations between the company and worker. And to have an effective flow, the process has to be done in cycles, usually once a semester or annually, to measure everyone’s progression.

Before diving deeper into each step, it’s good to reinforce the importance and benefits of giving constant feedback. In the flow that we follow, there’s a formal feedback meeting—which is essential to the process—but it doesn’t mean the manager has to wait for this step to give feedback. Providing the correct feedback right after a situation occurs is the best way to give the employees the opportunity to improve themselves and the results faster.

Now let’s understand the first phase of the process: the evaluation step. It’s essential to create clear and strategic criteria to evaluate all employees based on the company’s culture and objectives. Taking how the employee evaluated themselves into account is also a good way to better align expectations.

In the feedback meeting, the manager needs to give official feedback about the criteria points, showing which areas are being mastered and which have room for improvement. Moreover, this step is a good opportunity to receive feedback from the employee. Are they agreeing to the criteria? It’s always important to collect this type of information to continuously improve the process—see Kaizen in the Lean Glossary.

Knowing who the top performers are shows you what abilities and behaviors the whole company should follow. Mapping each employee’s weaknesses will also help create the optimal performance action plan. When establishing milestones, consider the SMART methodology: Specific, Measurable, Achievable, Realistic and Timely.

And the last step of the cycle is the action plan follow-up. At this point, employees present which actions were completed, results, metrics and so on. The managers can measure the progression, commitment and results of each employee.


This is the end of the cycle, but the start of a new one, so consider aligning the next challenges of each employee. Is this person the right fit for a promotion? Would this person be happier in another role or department?

How to start managing your Performance Evaluation process?

Implementing and managing this process looks simple, right? And it really can be. Excel, email or other simple tools to organize yourself during the flow can help… but having a tool specialized in this process can be much more effective.

If your process looks unorganized and if you are missing deadlines and can’t visualize the evolution of each employee, These are indicators that you need to be more efficient. Pipefy is likely the best solution for you.

Pipefy’s Performance Evaluation Template is based on the Lean methodology. It allows you to adapt the template to your needs, run all your process in one platform, and reduce wastes, especially time, of your operation. When you use Pipefy, you get:

  • A standardized the process flow, guaranteeing every employee is evaluated by the same criteria;
  • Centralized data in a single platform with the capabilities to measure your employees’ progression;
  • Automated manual steps to keep you from missing an impending evaluation.

Manage your Performance Evaluation process in a strategic and Lean way.

Use this template right now

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Luiz Eifler

One word that defines Luiz is communicative. Graduated in Public Relations, has much more experience in face-to-face marketing than online writing. But with time, maybe will be good at it. Works in Curitiba, Brazil.