We continue the search for pioneering workplace practices. We visit companies. We talk to academics. We interview CEOs, entrepreneurs and employees. Our aim is to learn how to make work more fun. The results are on our ever expanding Bucket List.

One place we haven’t yet visited in person is Netflix. However, we are inspired by the book “Powerful”, written by Patty McCord, their former Chief Talent Officer. And one key reason is because of how they give feedback—including how they ditched the frustrating annual performance reviews.

Before returning to Netflix, let’s step back and take a look at….

The annual misery

These are common. Once a year, a manager sits down with subordinates to rate their performance. And these sessions usually trigger stress, frustration, or resentment. Here’s why:

They are late - by definition

It doesn’t make sense to wait months to give feedback. It’s most effective when it’s timely. Why should you delay supporting the growth of a colleague? Why not support their improvement, now?

They are meaningless

When review time comes, you first check the goals that were set. This may be the first time anyone looked at them in a year.

Worse, you likely realize a few other things: