Establish Shared Understandings Establishing shared understandings and agreements takes guesswork and assumptions out of performance review process. Work with your team to create a list of performance management criteria that needs to be understood by all. Some examples: >Definitions of each performance competency >Definitions of rating scales or systems >Performance standards >Success indicators >What will be measured >How it will be tracked

Create Support Processes Creating support processes will become nucleus of partnership approach. In other words, support processes you create with your team become their critical opportunities to contribute to process. Again, work with your team to create processes that will support your performance review process. Some examples: >Weekly or bi-weekly meetings to discuss progress, roadblocks, etc. >Monthly, quarterly or semi-annual reports to track accomplishments, progress, etc. >A proactive ongoing feedback process - both employees and managers actively seek feedback regularly (what's going well, what can go better, what needs to change) >A year-end process for compiling information and planning for annual strategy/review discussion >A self-review process for employees - managers can request that self-reviews are submitted before manager writes review.

Integrate The System Now, put your process in action. Think of your "shared understandings" as your guide to performance standards and measurements. Your support processes are tools you use to gather and compile performance data. Now, all you need to do is to integrate information into your performance management system and schedule actual review meeting.

Reflect And Improve At end of each performance review cycle take time to get feedback from your team. It's as simple as scheduling a meeting or sending an email. It's a great time to review your shared understandings and support processes. Here are some questions to ask about process: >What went well? >What could have gone better? >What needs to change?

In Summary When it's time for annual performance review process both employees and managers have plenty of factual information, will already know how they're doing, and best of all, will have established relationships and rapport. The annual strategy/review discussion becomes a time for manager and employee to come together to reflect on past year, formally acknowledge accomplishments, strategize development opportunities and plan for upcoming year. And best of all, painful surprises have been eliminated.

5. Dump drama. Melodrama. It sells tabloids, and gets people to watch "Hard Copy" on TV, but it's something you don't need in your company. It saps valuable creative energy. If you've been using "Crisis Management" as your modus operandi, get out of office, read a few good books, (like Steven Covey's), benchmark with "new thinkers", and learn a new style. Crisis management is passe, wasteful and destructive.

6. Learn, teach and reward "Time-out" stress management techniques. A recent poll says that 90% of all Americans live in a state of chronic stress. YIKES!!!! No wonder customers get treated so poorly. Make sure people understand role they play in controlling their own stress. We don't have control over circumstances; we do have control of how we perceive them. Take a deep breath, count to ten, walk away (physically or mentally) when you have to and call a "Time-out." Short circuit stress on way in. Learn good stress management skills and teach them. Reinforce them. "Bob, I noticed how well you reacted with that angry customer yesterday, I was glad to see you take a deep breath and not react defensively - good job - you saved a valuable customer, and your own health as well. I'm proud to have you on team."

7. Encourage people to live in "now." Dwell on past only long enough to figure out what you want to learn from it, and then move on. Stop talking about "the good old days." What is important is what is going on right now. Give your fullest attention to exactly what you are doing now. Do it well, do it right and enjoy it. Customers can always tell if you are giving them your undivided attention, and they really appreciate it.

8. Start a list called "The 10 Best Things about Working Here." Let people add to it and watch it grow. It's fun, positive and a great way to focus people on what's right with your business. After list is finished start one called "Ten More.." Remember you get more of what you focus on.

9. Get psyched! Recognize that almost 80% of what average person takes in is negative. You've got a job to do. Create a positive sanctuary in your workplace. Develop a corporate library that includes all kinds of motivational literature, audio and videotapes. Play audiotapes and videotapes in lunchrooms, keep inspirational books around, start discussion groups. Create positive energy, people inside and outside company will feel it and want to come back for more.

10. Don't worry, be happy. Playing upbeat music helps lift your spirits. Challenge staff to develop "Happiest" of happy music tapes, a collection of tunes that will keep people smiling and whistling while they work. (They make great coming to and going home from tapes too.)

11. Smile. When you activate smiling muscles in your face, you activate "happy" brain chemicals that help you feel good. You can't be depressed when you are smiling, and smiles are contagious. So, smile.

As a manager, it's your responsibility to help to create an experience for your customer that has word "value" all over it. Customers respond better to a company that provides them with a quality product at a fair price served up by positive, upbeat, can-do people. Aw come on, who wants to do business with a grump?