Newton 360 on Deloitte’s “Reinventing Performance Management

Read Deloitte’s HBR article here

Deloitte, like roughly 58% of U.S. businesses, discovered that their annual performance management process was not driving business results. They realized that their annual performance process was burning close to 2 million personnel hours – in establishing the performance criteria, designing the evaluation tool, and carrying out the actual performance review with the employee.

The resulting performance rating given by leadership was inconsistent. It eroded their employee’s confidence in the process and negatively impacted performance.

Deloitte recognized one major drawback with traditional annual performance: Often it is the only feedback an employee receives from their manager. Surveys show that nearly 65% of employees feel that they are not receiving enough feedback in their positions.1

The majority of U.S. employers utilize an annual performance review despite research that indicates that both employees and managers find annual performance reviews to be a waste of time and money; and are not correlated with driving improved performance.2

Internally, Deloitte decided to change their own review process from talking to each other about their employee’s performance to talking to the employee about their performance.

Regular and ongoing performance feedback models are playing a critical role in defining the employee experience and have been correlated with employees feeling more valued in their roles.3 In fact, “over the last five years, organizations are radically changing the way they measure, evaluate, and recognize employee performance.”4

Nearly 90% of companies that have redesigned and implemented these new performance feedback models have seen an improvement in employee engagement.3 Bottom line, “high levels of engagement promote retention of talent, foster customer loyalty, and improve organizational operational and financial performance and stakeholder value.”5

Employees and employers crave transparency. When supervisors and managers provide employees with open and honest performance feedback, it builds higher levels of accountability and trust. Supervisors who provide employees feedback get better at delivering feedback, which then positively impacts performance. This is a win-win result for overall business results, and employee and front-line supervisor retention.

Newton 360 was designed with these principals in mind.

Newton 360 provides supervisors with the information that ensures that they identify which employees have had not had an encounter with someone in leadership, permitting supervisors to make the best use of their limited time.


1 65% of Employees Want More Feedback (So Why Don’t They Get It), Victor Lipman, Forbes Magazine, (August 8, 2016).
2 Rethinking Stale Performance Management Practices, Society for Human Resources Management, Joanne Sammer, (May 9, 2017).
3 People-Management Trends That Will Impact the Workplace in 2017, Victor Lipman, Forbes Magazine, (December 13, 2016).
4 Rewriting the Rules for a Digital Age, Deloitte Global Human Capital Trends, (2017).
5 Developing and Sustaining Employee Engagement, Society for Human Resources Management, (March 17, 2017).