Performance reviews done once a year—usually in December—can’t keep up with the speed of modern work. Leading companies (Adobe, Microsoft, GE) abandoned this archaic system years ago. Why?
"Discussing January’s success or June’s mistake in December isn’t management—it’s judgment."
The Recency Bias Trap
Humans remember the most recent events. In annual reviews, managers rate the last two months rather than the whole year. This creates unfair bonuses and deep perceptions of injustice.
The Solution: Continuous Feedback & 360 Agility
Management in 2026 means continuous performance management—OKRs set quarterly and feedback given in real time. Success shouldn’t depend on a single manager’s opinion; 360 reviews with anonymous peer and report input create a far more transparent competency map.