Performance Evaluation: A Key to Successor
Development
Danny Klinefelter
Constructive performance evaluations are essential for successor
development. Unfortunately, traditional performance appraisals tend to be just
the CEO telling the successor what he thinks the successor did well or needs to
improve on. This approach is often ineffective if the CEO avoids issues that
may be taken as criticism, if it results in a confrontation or the successor
becoming defensive, or if it leaves the successor feeling they have no input.
Stated another way, performance appraisals can take on a parent:child tenor
rather than being a business opportunity the helps the successor grow.
An alternative approach is known as the negotiated performance
appraisal. This approach is not about pay, it is a coaching tool, it is about
performance improvement, promotes two-way communication, provides
feedback to both the CEO and the successor, puts on burden of analysis on
both parties, and clarifies what needs to be done.
Feedback is a critical and necessary part of successor development. The
successor, as do all employees, needs to know how well they are performing,
needs positive feedback and validation on a regular basis, and needs input on
how to improve.
The negotiated performance appraisal approach begins with both the
CEO and the successor preparing separate lists prior to the actual performance
review. The CEO’s list addresses where the successor is performing well, where
they have shown improvement and areas where the CEO would like to see
improvement. The successor’s list addresses areas where they believe they
have performed well, areas where they think they have improved, areas where
they think the CEO would like to see improvement, and what they would like to
see the CEO do to help them be more effective. These lists are then exchanged
prior to the review discussion.
The focus of the review session is then on recognizing the successor’s
strong points, reaching agreement on areas where improvement is needed,
laying out the specific steps that are needed for improvement to occur, setting
realistic goals, and solving the problems that are identified.
This approach addresses two basic problems that are often stumbling
blocks to effective appraisals. The first is that if the person being reviewed
knows of their weaknesses, they prefer to point it out themselves. The second
is that it helps the CEO identify ways they can be more effective in helping the
successor develop their fullest potential.