Performance Reviews

Skill level: Intermediate


Performance reviews are a critical part of setting expectations and developing employees. In the service industry, performance reviews take on an even larger role because the most critical capital component tends to be human. Since human capital is the organization’s primary resource, optimizing it is essential to success.

Performance reviews should rely on objective measures and give employees stretch developmental opportunities. Specific objectives should align with the company’s strategic goals. It is critical to ensure the objective nature of the goals so that individuals can assess themselves on an ongoing basis. During performance review meetings, there should be no surprises. At least two levels of management should review the objectives and evaluations to ensure organizational consistency.


  • Communicates specific expectations to the employee
  • Aligns employee incentives with corporate strategies
  • Allows the company to direct development opportunities toward corporate goals

How to Use

  • Step 1.  Review corporate strategies.
  • Step 2.  Select strategies the individual can directly impact.
  • Step 3.  Develop measurable objectives that tie to the strategy.
  • Step 4.  Develop weights for each objective.
  • Step 5.  Review with the employee.
  • Step 6.  Periodically review and assess performance versus objectives, and revise objectives as needed.

Relevant Definitions

Not Applicable


CopyWorld is an independent copier service provider. It services copiers and charges end customers by the copy. The key for profitability is to ensure the lowest possible servicing cost while maintaining internal expenditures. It also launches new products throughout the year.

The company depends on repeat business, as it is geographically confined to the greater Salt Lake City, UT, area. To ensure customer satisfaction, it conducts random surveys after service events.

Below is a performance review form for a field service manager. The first two objectives relate to profitability. Objective three relates to the introduction of new products, and objective four ties in customer satisfaction.

The metrics are clearly set to be as objective as possible. The employee should be able to assess his or her individual score on an ongoing basis and should not be surprised at review time.

There are also places to record developmental goals and timelines. Indicating these objectives is important as well.

At the end is a place for signatures and an opportunity for a second-level review to ensure consistency across the organization and strategic alignment.

Example performance review form (view larger in PDF format)



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