As we approach the New Year, many businesses are entering the annual performance review period for their employees. This performance management process has been around for years, providing leaders with an opportunity to address successes, concerns and suggestions with employees every 365 days. However, it's increasingly apparent the annual performance review is a flawed process and is in many instances, causing more problems than it solves.

For starters, managers and employees put a heavy time investment into the annual review process. However, the outcome of the performance review process can include potentially biased opinions and inaccurate results. These factors have led to increased frustration and dissatisfaction with the current annual review process. 

It's clear there needs to be a change, and many organizations have started to adopt new approaches. Recently, many global organizations have taken steps to reinvigorate their performance management process by eliminating annual reviews entirely. But it still begs the question why many others are lagging and continuing to use an antiquated process that not only places undue stress on employees and managers but also can take a significant amount of time away from daily tasks.