Guide

How to run a performance review step by step

A guide for HR teams and managers: how to define what is reviewed, how to build the cycle in stages, how to align criteria across reviewers and how to close with a conversation and a plan.

On video

Clikma Performance

Evaluating your people from start to finish: self-assessment, manager review, goals, the feedback conversation and the progress of the process in view.

Narrated in SpanishEnglish subtitles

Transcript

Reviews in spreadsheets, reminders by email… and nobody knows where the process stands? Hi, I'm David. Meet Clikma Performance: evaluating your people, from start to finish, on the same platform where they learn. With the Process builder you set up your cycle to fit: you choose the stages, who takes part and with which rules.

Self-assessment, manager review, goals, feedback and closing: start from a template or from a blank page. Each person sees what's theirs to do and by when, and answers in a few clicks: it saves automatically. Managers rate competencies and goals on a clear scale, with the person's self-assessment in view.

Then, the feedback conversation: what was discussed and agreed is recorded, and the person closes their review. And if you're in HR, you have the whole process in view. Progress by stage and by structure, so you know where things are pending before the deadline. Results and reports in Excel and PDF, and reports that arrive in your inbox on their own.

From compliance to impact: evaluate, talk with and develop your people, all in Clikma. Clikma powers up your organization's learning ecosystem. Write to our accounts team: more at clikma.com

  • Purpose, scope and calendar
  • Goals, competencies and rating scale
  • The stages of the cycle, one by one
  • Feedback, closing and development

Updated 2026-10-31

How do you run a performance review?

First decide why you are reviewing (development, compensation or both), what you will measure (goals, competencies or both) and on what scale. Then build the cycle in stages, with a calendar and an owner for each one: goal setting, follow-up, self-assessment, manager review, a review of criteria across reviewers, the feedback conversation and closing. Finish with a recorded result and a development plan for each person.

In practice, what fails most is not the form but the execution: deadlines that slip, managers who come to the conversation unprepared and results that never lead to any action. Research confirms it: in Deloitte's 2025 global survey, 61% of managers and 72% of workers do not trust their organization's performance management process, and according to Gallup (2024) only 2% of CHROs at the largest U.S. companies strongly agree that their performance management system inspires employees to improve. That is why each person should know what they have to do and by when, HR should see progress by stage, and what is reviewed should be connected to training.

This guide explains each step with its decisions and its warning signs and, at the end, how it is done in Clikma.

Step 1: define the purpose, scope and calendar

Before designing the form, agree with senior management on what the review is for and who it covers.

  • What decisions will it inform?

    Development and training, bonuses or pay adjustments, promotions or a combination. If the result will affect compensation, the calculation rule has to be known from the start.

  • Who does it cover?

    The whole workforce or only some job roles, from what length of service, and what happens to people who join, change managers or leave during the cycle.

  • How often?

    Annually, with a mid-year review, or in shorter cycles. What matters is that the calendar is published and kept.

  • Who owns each stage?

    The employee, their manager, HR and, where applicable, a committee. Each stage needs an owner and a date.

Step 2: choose what to measure and on what scale

Most companies combine two perspectives: what the person achieved (goals) and how they worked (competencies).

Use a short scale of four or five levels, and describe what each level means with observable behaviors or results. A scale without descriptors invites each manager to read it their own way.

The guide “Competencies and goals” explains how to write measurable goals, how to choose competencies for each job role and how to weight them.

Goals and competencies in a performance review
DimensionWhat it measuresHow it is definedExample
Goals or targetsConcrete results for the period.Agreed at the start of the cycle, with an indicator, a target and a weight.Cut the branch's dispatch times during the half-year.
CompetenciesObservable behaviors at work.Taken from the job profile or from a company model, with described levels.Teamwork: coordinates with other areas and shares information on time.
Final resultThe combination of both.One weight for goals and another for competencies, and named ranges.60% goals and 40% competencies, with ranges such as “above expectations”.

Step 3: build the cycle in stages

A performance cycle is a sequence of stages, each with who acts, what they do and by when.

Depending on how many perspectives are added, people speak of a 90° review (manager only), 180° (manager and self-assessment), 270° (peers or direct reports are added) and 360° (manager, self-assessment, peers, direct reports and, sometimes, internal clients). More perspectives are not always better: each additional reviewer adds work and needs clear rules on how much they count and who sees their answers. In operational roles with a single supervisor and little interaction with peers, a well-run 180° review usually adds more than a 360° one.

Start with a simple cycle the organization can complete on time, and add stages once the process is established.

Typical stages of a performance review cycle
StageWho actsWhat it is forWarning sign
Goal settingThe employee proposes and the manager approves or sends back.Both know from the start what will be reviewed.Goals set at the end of the period, to fit what happened.
Follow-up and mid-year reviewThe employee and their manager.Adjust goals and talk before it is too late.The first conversation of the year happens at the final review.
Self-assessmentThe employee.The person reflects and comes to the conversation with their own view.It is skipped to save time and the conversation becomes a monologue.
Manager reviewThe direct manager.Review goals and competencies with evidence from the period.Similar ratings for the whole team, or ratings based only on the last few weeks.
Other perspectives (optional)Peers, direct reports or internal clients.Add perspectives in roles where collaboration is key.Reviewers are added without explaining how much their opinion counts.
Review of criteria across reviewersThe managers of an area together with HR.The same rating means the same thing in different teams.Each area applies the scale by its own yardstick.
Feedback conversationThe manager with the employee.Explain the result, listen and agree on development.The result arrives by email, without a conversation.
ClosingThe employee, the manager and HR.Record the result and the agreements.Reviews still open months after the deadline.

Step 4: align criteria across reviewers

Calibration is a meeting in which the managers of an area review results together before communicating them, so that the same rating means the same thing in every team.

In a calibration session, each manager presents their team's results with evidence and the group reviews the cases that fall outside what is expected: teams where every rating is high, large gaps between the self-assessment and the manager review, or results that do not match the area's indicators. HR moderates and records the changes and their justification.

Some companies compare the distribution of results against a reference curve. Used as a guide, it helps detect deviations; imposed as a mandatory quota, it tends to produce unfair results in small or high-performing teams.

A calibration session works best with a simple agenda: HR shares the distribution of results by team beforehand; each manager presents only the extreme cases and those that raise doubts, with evidence; the group agrees on adjustments and their justification, and HR records each change before releasing the results.

Common rating biases and how to reduce them
BiasWhat happensHow to reduce it
Leniency or severityThe manager gives high (or low) ratings to the whole team.Clear descriptors for each level and a review across reviewers.
Central tendencyEverything ends up at the middle level to avoid taking a position.Ask for evidence for every rating and use an even-numbered scale if needed.
Halo effectOne standout trait colors all the other ratings.Rate each competency separately, with examples.
RecencyWhat happened in the last few weeks weighs more.Keep follow-up notes during the year and hold the mid-year review.
AffinityA better rating for whoever resembles the manager.Observable criteria and a second look during calibration.

Step 5: the feedback conversation and closing

The conversation is the part that creates the most value and the one that is most often neglected. It should be prepared and recorded.

  • Prepare the conversation

    The manager reviews the self-assessment, the goals and the evidence from the period, and comes with two or three clear messages.

  • Talk, do not read the form

    Start with the person's view, explain the result with concrete examples and listen before wrapping up.

  • Agree on development

    Strengths, areas for improvement and two or three actions with a deadline, such as a course, a project or coaching.

  • Close and record

    The result and the agreements are recorded, and the employee can give their opinion on the conversation.

Step 6: from result to development

A review that does not lead to action becomes an annual formality. The result has to connect with what the person will learn and do differently.

Turn the agreements from the conversation into a development plan with owners and deadlines, and connect it to training: courses, learning paths, on-the-job practice or mentoring. Review the plan at the next follow-up conversation, not only in the next cycle.

When the review and training live on the same platform, managers see their team's performance and training in one place, and HR does not have to cross-reference spreadsheets.

In Chile: internal rules and personal data

In Chile, a mandatory performance review has to be included in the internal rules of order, hygiene and safety (RIOHS), and its results are the employee's personal data.

The Labor Directorate (Dirección del Trabajo) has stated (Ruling 881, December 2024) that employers may establish a mandatory performance review provided they respect workers' fundamental rights, and that they must include it in the internal rules, in Spanish and with its manuals attached. Changes to the internal rules are notified to workers in advance, as the Labor Code requires.

Review results are personal data: the employer must keep the employee's private information confidential, and Law 21.719 raises data protection requirements. Define who sees each result and how long it is kept. This guide is not legal advice: review your process with your legal team.

How it works in Clikma

In Clikma, HR designs the cycle in stages and each person sees what they have to do and by when, on the same platform where they learn.

Frequently asked questions

How do you run a performance review step by step?

Define the purpose, scope and calendar; choose what to measure (goals, competencies or both) and on what scale; build the cycle in stages (goals, follow-up, self-assessment, manager review, review of criteria and feedback conversation); close with the result recorded and connect the agreements to a development plan.

What are the stages of a performance review?

The usual ones are goal setting, follow-up or mid-year review, self-assessment, manager review, a review of criteria across reviewers, the feedback conversation and closing. Each company chooses which ones to use and in what order.

What is the difference between a 90°, 180°, 270° and 360° review?

The number of perspectives: 90° is the manager only; 180° adds the self-assessment; 270° adds peers or direct reports, and 360° brings together the manager, self-assessment, peers, direct reports and, sometimes, internal clients.

What is performance calibration?

A joint review of results by the managers of an area, moderated by HR, so that the same rating means the same thing in every team before results are communicated.

How often should performance be reviewed?

The most common approach is an annual cycle with a mid-year review. What matters most is holding follow-up conversations during the year, so the final review brings no surprises.

How do you give feedback in a performance review?

By preparing the conversation with the self-assessment and the evidence, starting with the person's view, explaining the result with concrete examples, listening and closing with two or three development actions with a deadline.

Does a performance review have to be in the internal rules in Chile?

According to the Labor Directorate (Dirección del Trabajo) in Ruling 881 of 2024, if the employer establishes a mandatory performance review, it must include it in the internal rules of order, hygiene and safety (RIOHS), in Spanish and with its manuals attached. Review your case with your legal team.

What are the most common mistakes in performance reviews?

Setting goals at the end of the period, using scales without descriptors, rating only on what happened in the last few weeks, communicating the result without a conversation and not connecting what was reviewed to any development action.

What software can you use for performance reviews?

One that lets you build the cycle in stages to fit your process, review goals and competencies, show progress by stage and connect the result to training. The guide “How to choose performance software” sums up the criteria.

Sources

Next steps: how to get started with Clikma

If you are evaluating a platform to review and develop your people, this is the usual path.

  1. Book a meeting

    On the contact page you pick a time on the calendar, or you can write to contact@clikma.com or message us on WhatsApp at +56 9 7960 1634, Monday to Friday from 09:00 to 18:00.

  2. See a demo with your process

    We walk through the cycle your company uses, with its stages, its reviewers and its deadlines.

  3. Define the scope and implementation

    With a project manager, the scope, timelines and roles are set; the HR system is connected and job roles and managers are loaded.

  4. Pilot run and ongoing support

    Before opening the cycle to the whole company, it is tested with a small group and adjusted; after that, the Clikma team keeps supporting the operation.

Book a meeting How to choose performance software

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