Understanding the Performance Review Process at Microsoft (2015)

As of 2015, Microsoft underwent significant changes to its performance review process. This transformation moved away from its traditional stack ranking system, adopting a more holistic approach. This article provides an in-depth look at the new process and its operational aspects.

Shift to Continuous Feedback

The new performance review process at Microsoft emphasizes continuous feedback throughout the year rather than relying on annual reviews. This approach is aimed at fostering a more collaborative and supportive work environment. Managers are encouraged to have regular one-on-one meetings with their employees to discuss yearly goals, performance, and development needs.

Setting Clear Goals

Microsoft introduced a culture where employees are expected to set clear and measurable goals at the beginning of the review period. These goals should align with both team and organizational objectives. This alignment ensures that individual contributions are aligned with broader strategic goals. For example, a software engineer might set goals related to project completion, code quality, and teamwork.

Structured Performance Conversations

The performance review process includes structured conversations between employees and managers. These discussions are designed to focus on achievements, challenges, and areas for growth. This structured approach helps to ensure that all aspects of an employee’s performance are thoroughly evaluated and discussed in a timely manner.

Incorporating Peer Feedback

A key element of the new process is gathering feedback from peers. This peer feedback provides a well-rounded view of an employee's contributions and collaboration skills. By incorporating feedback from colleagues, the review process becomes more objective and balanced, reducing the likelihood of biased assessments. For instance, in a software development role, peer feedback might highlight an employee's ability to work effectively in a team, help solve problems, or innovate.

Fostering a Growth Mindset

The new review process emphasizes a growth mindset, where employees are encouraged to learn from feedback and improve continuously. This focus on learning and development is in line with CEO Satya Nadella's vision for a culture that prioritizes learning and innovation. Employees are viewed more as individuals who have the potential to grow and improve rather than being evaluated against a fixed standard.

Moving Beyond Stack Ranking

While the traditional stack ranking system was eliminated, managers still rate employees based on individual contributions and potential. Calibration sessions among managers ensure fairness and consistency in ratings. These sessions help to align the ratings within the team and provide a baseline for comparison across different teams. This process ensures that all employees are judged against a fair and consistent standard.

Identifying Development Plans

The outcome of performance reviews includes the development of individualized development plans. These plans identify skills to improve and opportunities for career advancement. These plans are designed to help employees achieve their career goals and contribute more effectively to the organization. For instance, a software engineer might be encouraged to learn a new programming language or develop their leadership skills.

Personal Experiences with the Review Process

As a software engineer at one of Microsoft's California offices, I have personal experience with the performance review process. While the new system is not as harsh as the stack ranking, it can still work against you. For example, when I was hired as an SDE II, I was brought into a role where I was completely unfamiliar with the technology stack. Despite my hard work, ramping up took a long time, and I underperformed on my initial deliverables. My connects (peers) have some really bad remarks in their reviews, which made it difficult to transfer to a different role within the same year. My team mates who were at the same level as me knew at least one of the languages we use, and some had moved up after a reorganization of another Microsoft team. Additionally, when I received my offer, my recruiter told me I would be hired into another role that matched my background skills, but I wasn't told this until my first day at work, when I found out that I was being put on a different area.

These personal experiences highlight the challenges and complexities of navigating Microsoft's performance review process. It's important for employees to communicate effectively with their managers and peers to ensure that their contributions are recognized and valued.

Conclusion

The shift to a continuous feedback system at Microsoft has been a significant move towards a more collaborative and supportive work environment. While the new process presents its own challenges, it aligns with the company's vision of a culture focused on learning and innovation. By fostering a growth mindset and continuous development, Microsoft empowers its employees to grow and contribute effectively to the organization's goals.

Keyword inclusion:
Microsoft performance review, continuous feedback, peer feedback, goal setting, growth mindset