Are annual performance reviews necessary?

We live in an interactive age where feedback provided constantly from various sources and channels.

Performance review, in my opinion, is an ongoing process. Honest feedback and coaching should be provided by leaders as necessary during the year.

The review intervals can and should be more dynamic

Business leadership in global economic slowdown.

John F. Kennedy once said: "When written in Chinese, the word 'crisis' is composed of two characters. One represents danger and the other represents opportunity." Difficult times require fast reaction from one hand and managed change process plan, from the other hand.

It is also the time where business leadership is under enormous pressure, more than the usual, to perform in a decisive way to overcome and cope with the situation.

Some managers may choose the short term approach of dramatically cutting costs by reducing headcount. This is a very effective short-term approach which may contribute to mid-term profitability maintenance. However, it is definitely not a robust solution as the objective problem remains, and it will be much difficult to execute a growth plan with very limited resources and low morale (as a result of massive cut-downs with no long-term plan).

Profitability is not enough; it is the accelerating growth process that creates the sustainable value. The only way it could be achieved is via long-term approach.

Leaders should adjust faster and be even more agile. Sure, some immediate actions are required, but it should be part of long-term approach. Some may say that Crisis is a "great opportunity to learn" but the truth is that no one really likes recession. Leaders need to face reality and make sure that the teams are well informed and aware of the difficult situation. It is more likely that by sharing possible directions toward solutions, the teams would probably be very supportive of management’s decisions.

I am not suggesting that management or leadership is sort of popularity contest. What I say is that unpopular discussions or decision are part of the job of any leader. It should be fairly presented and shared with the teams. Eventually, it will result in support and commitment of team members.

Strong plan, supportive business leadership, empowered teams and healthy corporate culture should contribute significantly to better business preparedness in challenging times.

Succession planning: leadership challenge or opportunity?

In today's competitive markets, it is essential to maintain highly-qualified leadership talent. It is also important to the continued corporate performance. The concept is very clear, but is it easy to implement it?

The HR role is only secondary in this process; it is one of the strategic missions any business leader should face. Having said that the general expectation is that a business leader will invest in his successor. Handled properly, the business leader will gain challenged follower and motivated potential team leader.

In some cases, business managers find the above process challenging and even threatening. As simple as it sounds. Although they realize the importance of developing the potential leader' skills, they step back and stress an invisible line which makes the succession process impossible. Instead of being satisfied with their team talent development, they think about those who "outshine the master"…

Great business leaders identify and develop the skills of their team in general and for those who can replace them, in particular.

The benefit is straightforward. Successful succession planning provides the professional horizon for leadership talents. It also demonstrates the correlation between the corporate leadership requirements and long term management motivation.

Succession planning, in my opinion, is not just an opportunity. It is a strategic investment opportunity.

Meir