Reinventing Performance Management

The current way of performance review apparently says more about the reviewer than the reviewed and takes a lot of time – 2 million hours annually at Deloitte.

Objective as I may try to be in evaluating you on, say, strategic thinking, it turns out that how much strategic thinking I do, or how valuable I think strategic thinking is, or how tough a rater I am significantly affects my assessment of your strategic thinking.

It was time for Deloitte to redesign its performance management, realize process improvement and a better outcome. It was brought back to four questions:

  • Given what I know of this person’s performance, and if it were my money, I would award this person the highest possible compensation increase and bonus \[measures overall performance and unique value to the organization on a five-point scale from “strongly agree” to “strongly disagree”].
  • Given what I know of this person’s performance, I would always want him or her on my team \[measures ability to work well with others on the same five-point scale].
  • This person is at risk for low performance \[identifies problems that might harm the customer or the team on a yes-or-no basis].
    This person is ready for promotion today \[measures potential on a yes-or-no basis]

From Harvard Business Reviews

The above could also be used to measure the performance of the tax function and whether the right skill set from a teaming perspective is available on the long run.


About Richard Cornelisse

I advise multinational businesses in improving the efficiency and effectiveness of their Indirect Tax Function and Tax Control Framework. I started my career as a manager at Arthur Andersen and then became a partner in EY where I led the indirect tax performance team for Netherlands and Belgium. Currently I am a senior managing director of Phenix Consulting. I have over 20 years’ experience advising clients on international VAT issues. I am specialized in the tax aspects of financial transformations, shared service centre migration, and post merger integration work. I am also somewhat of a mentor, giving back to the profession. If you are interested in conversation and discussion, please feel free to contact me.
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