Issue 3 - Simple Annual Reviews

There was no summer slumping over here! Leslie launched his new website, got CEPA certified, and has written up a great primer for your Annual Reviews.

Hello World. Leslie has a new website.

Thanks to the awesome team (and fabulous clients) at fare*well, Leslie's gorgeous new website is up and running! Go check it out – and if you want me to add a different version of your logo to the little rotating brag bar, just email me and we'll get it sorted.

CEPA Certified!

Leslie did, indeed, pass his Certified Exit Planning Advisor (CEPA) exam in July and is now officially CEPA certified. Woo hoo! What does this mean for you? He now has a much deeper understanding of how EOS can be used intentionally to help owners exit successfully. If you've been thinking about exit planning but haven't a clue where to start, let's get you scheduled for a call with Leslie to see how he can help.

Leslie's Integrated Insights

Did you know that Leslie is a regular guest on SexTech n' Chill's Fireside Chats? He has his own playlist on their YouTube channel, that is just his heart-centered business/culture commentary segment from each episode. Now, I personally think you should listen to the entire episodes, because Reuben n' Sherri are super gifted hosts and bring out the best in their guests. They're doing something really special! (And I'm not just saying that because they're clients and friends – I really appreciate the work they're putting into the world!) 🫶🏻

Leslie's Corner: Simple Annual Reviews that Build Long Term Relationships

I got a great question from a client asking why EOS Annual Reviews are just one page. Are they really supposed to be that simple? The answer is yes. I can’t cover everything about Annual Reviews in a single newsletter, but I want to get to the heart of why the simplicity matters. Let’s start with critical context. 

René Boer and EOS Founder Gino Wickman's How to be a Great Boss lists two requirements to be a great leader and manager, EOS-style. They are: 

1. You have to genuinely care about your people. 
2. You have to want to be great. 

For Annual Reviews, I like pairing the above with this quote from another great EOS Worldwide book, People: Dare to Build an Intentional Culture, by Mark O'Donnell, Kelly Knight, & CJ DuBe': 

"Get into the habit of thinking of people as an investment. Investments tend to grow in proportion to how much thought, effort, and resources you put into them…. Ask: how are we helping people with their personal growth? With stretching their capabilities?.... The more you can shift from the mindset of people as assets to a mindset of people as individuals to invest in, the more super-loyal, super-actualized traction you’ll get with the people you’ll retain.” People: Dare to Build an Intentional Culture p184

That’s the context: We must genuinely care about our people and do our best to be great and get better every day in how we care about them. [In other words: Love First!]

The EOS “by the book” recommendation is to have three Quarterly Conversations and one Annual Review with each employee. I like to think of the Quarterly Conversations as “short term professional growth and accountability,” while the Annual Review is our opportunity to really show we care about the long term, holistic health of our people.

To do this, we need to create an environment that encourages open, honest, and vulnerable conversations that are two-way. This is one of the reasons why simple Annual Reviews are so powerful compared to multiple page surveys, assessments, etc. Save those things for performance reviews, which should be separate from Quarterly Conversations and Annual Reviews.  

The reason we can keep Annual Reviews simple is that EOS already provides accountability data from other tools like: Quarterly Conversations; discussions about Core Values, Rocks (and their completion rate), Scorecards, L10s, the Accountability Chart, and trust builders (usually done in year 2 of EOS) like Working Genius, Kolbe, DISC, Predictive Index, Culture Index, Strength Finders.

If you are all-in on EOS, there is no shortage of information available for your consideration when doing Annual Reviews.  

How to be a Great Boss has a free toolkit that has an example Annual Review template to riff on. My adaptation edits the existing questions just a touch and adds a fifth question that creates the opening to show genuine care and interest about your peoples’ long term goals. 

For easy reference, EOS’s example template has 4 questions: 

1. Strengths and key accomplishments 
2. Area(s) that needs improvement
3. Plan to get things on track
4. Comments 

Below are my changes, with short explainers for you to consider. As a reminder, you and your employee fill this out and then meet to compare notes. You'll then create a finalized version in the meeting, or shortly thereafter, for both to sign (remember Annual Reviews are officially documented, Quarterly Conversations are not). 

Strengths and key accomplishments

This is the same as the original template. It gives both you and your employee the opportunity to celebrate the good stuff and for you to demonstrate to them that they are seen and appreciated.

Areas for improvement

There should be no surprises for either of you in this section. Areas for improvement should have come up in L10s, Quarterlies, Rock completion rate, and Scorecards. It is a nod to the work in progress we all are, not a place to dole out discipline or censure. Remember that EOS has the “Three-Strikes” tool for discipline or potential firing situations. (And yes, that’s a terrible name for a very helpful and ethical tool.)

Professional goal for next year

This is a new section I suggest for creative agencies, especially. Most creatives are thinking ahead and building their skillset; you’re lucky to be their landing place for the time you have them, and you’ll keep them longer if you can facilitate their professional development.

Plan for next year 

This is a modification to “Plan to Get On Track,” which feels a little punitive to me. Not only is it a more positive/optimistic prompt, it includes how to achieve the Professional Goal from above. Followup on this plan happens in Quarterly Conversations. Depending on the details, these may also make great Individual Rocks. 

Where do you see yourself 3 years from now? 

This is a new section and an individualized take on the 3 Year Picture that creates a powerful version of “create the opening.” Inviting people to share and develop future plans shows that you care about their future and gives you both the opportunity to take action together. This can build powerful win-win, present-tense actions (investments) that lead to great long term results for them, your business, for your team, and for yourself. 

Regardless of their answer, it's important not to judge in the moment, but rather get curious and ask helpful questions. If your culture and people take well to this question, consider introducing the concept of a Personal V/TO as described in People: Dare to Build an Intentional Culture. 

Make sense? Feel free to ask follow up questions!

Below is my take on the Annual Review template (thanks, Laura, for putting it together). Feel free to make your own!

Download The Great Boss Toolkit here.

Doggo of the Month

Happy end of summer, everyone (except our Southern Hemisphere compatriots)! Stay safe, love first, and we'll see you next time! 💜