5 Steps to Prepare for Yearly or Performance Reviews as a Leader
November 7, 2025
Performance reviews shouldn’t be a one-sided formality - they’re equally important for both sides of the table. Whether you’re giving or receiving feedback, as a leader you should care deeply about making this conversation meaningful.
It’s your chance to reflect on progress, identify gaps, set new goals, and - most importantly - help your people grow.
Here’s how to prepare effectively - and make the most out of every review:
1. A Yearly Review Shouldn’t Be a Surprise
What you hear or say during the review should never come as a surprise to either side.
If you genuinely want to help your team members grow, you need to have regular 1-on-1s (every 3–4 weeks, ideally). Frequent, open conversations help you track progress and address challenges early, so the yearly review becomes a summary, not a shock.
It’s also important to gather 360-degree feedback several times a year - it gives a broader, more objective view of performance and team dynamics.
2. Collect Facts, Not Feelings
Start by reviewing tangible data - completed goals, project outcomes, feedback from peers or clients.
The more specific you are, the less subjective the conversation becomes. People value feedback that’s based on facts, not impressions.
Also, remember that how you deliver feedback matters - especially if it’s not entirely positive.
Use a thoughtful, structured approach so the message is clear but never discouraging.
3. Align on Goals Early
Before the meeting, revisit the person’s original goals and expectations. Were they realistic? Still relevant?
If something changed during the year - acknowledge it. Misalignment often happens because priorities shift, but targets stay the same.
A competency matrix can really help here: it gives both sides a clear view of ongoing challenges, visible progress, and documented achievements. Make sure new goals are specific, measurable, and fully understood by both sides.
4. Identify Gaps and Growth Areas
Use the review to pinpoint areas that need strengthening - both technical and soft skills.
A skills matrix helps bring structure and objectivity to this process: it defines what each skill level means and turns feedback into a clear roadmap rather than a vague list of weaknesses.
5. Prepare Development Ideas, Not Just Feedback
Don’t stop at “here’s what to improve”. Come with ideas on how to make it happen - courses, mentoring, shadowing, or stretch projects.
People remember leaders who enable growth, not just those who evaluate performance.
Final Thought
With the right preparation, performance reviews become less about evaluation - and more about progress, learning, and shared accountability. When you come in with facts, empathy, and a clear framework, you build trust, and make development a shared responsibility, not a one-time event.
