Why Performance Reviews Still Matter
Performance reviews have earned a negative reputation in many workplaces, often because they are poorly designed, infrequent, or disconnected from day-to-day work. However, when done well, performance reviews are one of the most powerful tools a manager has for aligning team effort with business goals. They provide a structured opportunity to recognize achievements, address gaps, and plan for growth.
For small and medium businesses in Kenya, formal performance management can feel like an overhead reserved for large corporations. In reality, even a lean review process brings clarity and accountability to your team. The key is to design a process that is practical, consistent, and focused on outcomes rather than bureaucracy.
Choosing the Right Review Cadence
The frequency of your performance reviews should match the pace of your business. Annual reviews are the traditional approach, but many modern organizations are shifting to quarterly or even monthly check-ins. Quarterly reviews work well for most small businesses because they are frequent enough to keep goals relevant without creating excessive administrative burden.
Regardless of the cadence you choose, consistency is essential. Set review dates at the beginning of the year and communicate them to all staff. When employees know that reviews are a regular part of the work rhythm, they are more likely to take goal-setting seriously and track their own progress throughout the period.
| Cadence | Best For | Pros | Cons |
|---|---|---|---|
| Annual | Stable roles with long-term projects | Low admin overhead | Feedback is delayed; goals may drift |
| Bi-annual | Most SMEs and growing teams | Balanced frequency | May miss short-term issues |
| Quarterly | Fast-paced teams, startups | Timely feedback; agile goal adjustment | Requires more manager time |
| Monthly check-ins | Sales teams, new hires on probation | Continuous alignment | Can feel excessive for experienced staff |
Setting Meaningful KPIs
Key Performance Indicators (KPIs) are the measurable targets that define success for each role. Effective KPIs are specific, measurable, achievable, relevant, and time-bound. Avoid vague objectives like 'improve customer service' and instead define targets such as 'achieve a customer satisfaction score of 90% or above by the end of Q2.'
Each employee should have between 3 and 5 KPIs that align with both their role and the broader business objectives. Involve employees in the goal-setting process to increase ownership and buy-in. When people have a say in defining their targets, they are more motivated to achieve them.
- Align individual KPIs with departmental and company-level goals
- Use a mix of quantitative metrics and qualitative objectives
- Make targets challenging but achievable to maintain motivation
- Review and adjust KPIs if business priorities shift mid-cycle
- Document all KPIs in a shared system so both parties can track progress
Structuring the Review Conversation
The review meeting itself should be a two-way conversation, not a one-sided evaluation. Begin by asking the employee to share their self-assessment, including what they feel went well and where they struggled. This gives you insight into their perspective and sets a collaborative tone for the discussion.
Follow a structured format to ensure consistency across all reviews. Start with achievements and positive feedback, then discuss areas for development, and conclude with forward-looking goals. Allocate at least 45 minutes to an hour for each review to allow for a thorough discussion without feeling rushed.
- 1Employee self-assessment (10 minutes)
- 2Manager feedback on achievements and strengths (10 minutes)
- 3Discussion of development areas and challenges (10 minutes)
- 4Goal setting for the next review period (10 minutes)
- 5Career development and training needs (5 minutes)
- 6Summary and next steps (5 minutes)
Using Feedback Frameworks
Giving feedback is a skill that many managers find challenging, especially when addressing performance gaps. The SBI (Situation-Behaviour-Impact) framework is a practical model that keeps feedback specific and constructive. Describe the situation where the behaviour occurred, explain the specific behaviour you observed, and articulate the impact it had on the team or business.
For example, instead of saying 'you need to communicate better,' use the SBI model: 'In last Tuesday's client meeting (situation), you presented the proposal without reviewing the updated figures (behaviour), which led to the client questioning our accuracy and delayed the deal by a week (impact).' This approach removes ambiguity and gives the employee a clear understanding of what needs to change.
Tracking Goals Between Reviews
A performance review is only as effective as the follow-through that happens between cycles. Goals set during the review should be documented and revisited regularly. Encourage managers to hold brief monthly or bi-weekly check-ins to discuss progress on KPIs, address blockers, and provide ongoing coaching.
Using a centralized system to track goals and progress ensures nothing is forgotten. When both the manager and the employee can see the status of each objective in real time, the formal review becomes a summary of known information rather than a series of surprises. This transparency builds trust and keeps performance conversations productive.
Managing Performance Reviews with Vendly
Running performance reviews across a growing team requires more than documents and calendar reminders. Vendly provides a centralized platform where you can set KPIs, schedule review cycles, collect self-assessments, and track goal progress throughout the year. Managers and employees can collaborate on development plans from a single dashboard.
With built-in templates, automated reminders, and historical tracking, Vendly eliminates the administrative burden of performance management. You can focus on having meaningful conversations with your team instead of chasing paperwork and manually compiling review data.
