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From performance management to performance development: What helps leaders succeed
The shift to continuous coaching and frequent feedback helps leaders build capability, with BDO saying traditional performance reviews are no longer enough.
Organizations are increasingly shifting performance management from annual reviews to continuous feedback cycles, aiming to better support employee development and connect individual contributions to business outcomes.
May 2025 research from Cornell University's Center for Advanced Human Resource Studies found that only one in five employees feel motivated by existing systems, while only 32% of executives believe their processes enable high-quality talent decisions.
Many leaders struggle to consistently commit to development processes amid competing priorities, often resorting to reconstructing months of activity after the fact instead of supporting employees as work progresses.
BDO recommends that organizations simplify these processes by integrating them into daily workflows, ensuring leaders receive practical support and clear frameworks to provide timely coaching and feedback.
While AI tools can help managers track performance and identify development gaps, BDO emphasizes that these technologies cannot replace essential, ongoing human conversations between managers and employees.