"Leadership is all about emotional intelligence. Management is taught, while leadership is experienced."
Rajeev Suri
Nokia CEO
- Date
How to Conduct an Effective Annual Review: A Leadership & Management Guide
posted in Business Coaching
Adam Kreek
Annual reviews are more than just a performance evaluation—they’re an opportunity to align on goals, reinforce trust, and build a stronger team. When done well, they create clarity, engagement, and motivation. When done poorly, they become a dreaded, ineffective exercise in bureaucracy.
To get it right, leaders and managers must approach annual reviews with clear performance metrics (KPIs and OKRs), structured feedback, and emotional intelligence. This combination ensures that the process is data-driven but also human-centered.
Step 1: Prepare for the Review
Both the leader and the employee should come prepared with answers to these three reflection questions before the meeting:
- You get the best of me when…
- You get the worst of me when…
- This is what I need from you…
These questions help both parties gain insight into work habits, expectations, and stressors. They allow for a more meaningful, trust-building conversation that goes beyond metrics.
In addition to these reflections, both should review the employee’s KPIs (Key Performance Indicators) and OKRs (Objectives & Key Results) to assess their performance and contribution to company goals.
Step 2: Use KPIs and OKRs to Drive the ConversatioN
Annual reviews should be rooted in measurable performance while still making space for personal growth and development.
KPIs: Measuring Past Performance
KPIs help assess how well an employee has met their responsibilities. These should be tied to role-specific expectations.
Example KPIs for a Manager:
- Employee engagement score above 80%
- Retention rate of direct reports above 85%
- Delivery of projects on time and within budget
Example KPIs for a Leader:
- Company revenue growth of 10%
- Expansion into two new markets
- Employee satisfaction score above 85%
OKRs: Aligning on Future Goals
OKRs help set ambitious yet achievable objectives for the coming year. They should be co-created to drive clarity and commitment.
Example OKRs for a Manager:
- Objective: Improve team performance and collaboration
- KR 1: Conduct monthly one-on-ones with each team member
- KR 2: Implement a feedback loop to gather quarterly insights
- KR 3: Increase cross-functional project participation by 20%
Example OKRs for a Leader:
- Objective: Expand organizational impact
- KR 1: Secure three new strategic partnerships
- KR 2: Increase thought leadership content engagement by 30%
- KR 3: Develop and launch a leadership training program
Step 3: Conduct the Review with Emotional Intelligence
Numbers and goals are important, but human dynamics drive performance. Emotional intelligence plays a key role in how feedback is given, received, and acted upon.
Structure the Conversation:
- Review KPI achievements
- Celebrate wins and progress
- Identify areas of improvement
- Discuss OKRs for next year
- Align on priorities
- Ensure clarity on expectations
- Go through the emotional intelligence reflection questions
- Each person shares their answers
- Discuss how to best work together in the coming year
Key Mindset Shifts for Leaders & Managers:
- Replace judgment with curiosity. Instead of “Why didn’t you hit this goal?” ask, “What were the biggest challenges you faced in reaching this goal?”
- Praise effort, not just results. If someone fell short but learned critical lessons, acknowledge that. Growth happens through setbacks.
- End with action steps. Both leader and employee should leave with clear next steps for personal and professional development.
Step 4: Follow Up & Keep the Conversation Going
An annual review shouldn’t be the only time performance and alignment are discussed. Leaders and managers should:
Schedule quarterly check-ins to revisit OKRs
Encourage ongoing feedback through weekly or monthly one-on-ones
Reassess emotional intelligence insights as dynamics evolve
Great leaders don’t just review performance—they build relationships, trust, and a culture of accountability.
The Bottom Line
An effective annual review isn’t just about what got done—it’s about how it got done and how we move forward together.
By using KPIs and OKRs to assess performance, and emotional intelligence to deepen trust, leaders and managers can create a high-performing, aligned team.
How are you approaching your annual reviews this year?
–––––
Adam Kreek is on a mission to positively impact organizational cultures and leaders who make things happen.
Kreek is an Executive Business Coach who lives in Victoria, BC, near Vancouver, British Columbia, Canada, and Seattle, Washington, USA, in the Pacific Northwest. He works with clients globally, often travelling to California in the San Francisco Bay Area, Atlanta, Georgia, Toronto, Ontario and Montreal, Quebec. He is an Olympic Gold Medalist, a storied adventurer and a father.
He authored the bestselling business book, The Responsibility Ethic: 12 Strategies Exceptional People Use to Do the Work and Make Success Happen.
Discover our thoughts on Values here.
Want to increase your leadership achievement? Learn more about Kreek’s coaching here.
Want to book a keynote that leaves a lasting impact? Learn more about Kreek’s live event service here.
Other popular blog posts:
Discover the ViDA Values Framework, a structured approach to defining and living your core values. Read this
After 18 years and thousands of speeches, here’s what Kreek has learned about motivating any audience—without the fluff. Check it out
Most people set goals the wrong way—here’s how CLEAR goals are better than SMART goals, and how they can help you achieve more, with less frustration. Learn more
–––––
Adam Kreek is on a mission to positively impact organizational cultures and leaders who make things happen.
Kreek is an Executive Business Coach who lives in Victoria, BC, near Vancouver, British Columbia, Canada, and Seattle, Washington, USA, in the Pacific Northwest. He works with clients globally, often travelling to California in the San Francisco Bay Area, Atlanta, Georgia, Toronto, Ontario and Montreal, Quebec. He is an Olympic Gold Medalist, a storied adventurer and a father.
He authored the bestselling business book, The Responsibility Ethic: 12 Strategies Exceptional People Use to Do the Work and Make Success Happen.
Discover our thoughts on Values here.
Want to increase your leadership achievement? Learn more about Kreek’s coaching here.
Want to book a keynote that leaves a lasting impact? Learn more about Kreek’s live event service here.
Other popular blog posts:
Discover the ViDA Values Framework, a structured approach to defining and living your core values. Read this
After 18 years and thousands of speeches, here’s what Kreek has learned about motivating any audience—without the fluff. Check it out
Most people set goals the wrong way—here’s how CLEAR goals are better than SMART goals, and how they can help you achieve more, with less frustration. Learn more