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Startup Leadership Series - #3

Why do performance reviews feel unclear or uncomfortable?

Running a performance review for the first time can feel difficult, especially in a startup where structure is limited. We often find ourselves without clear frameworks, defined criteria, or even a shared understanding of what “good performance” looks like. At the same time, we know the conversation matters; it affects motivation, development, and trust.

So the question becomes: what is the purpose of this conversation?

What should a performance review actually achieve?

A performance review is not just about evaluating the past, it is about creating clarity for the future. In startups, this is often where things go wrong. We tend to make reviews either too vague or too reactive, focusing on isolated feedback rather than overall direction. But what people need most is understanding: what is expected of them, where they stand, and how they can improve.

How do you make performance reviews meaningful?

Here’s the shift: a good performance review is not about judgement, it is about alignment.

Recognising this is important, but the responsibility still sits with you. If you don’t create clarity in that moment, it is unlikely to appear elsewhere. A meaningful review connects individual contribution to business needs, highlights strengths and gaps, and defines what progress looks like moving forward. That requires being specific, not just saying what worked or didn’t, but explaining why, and what needs to change. Because in startups, performance reviews are not just a process, they are one of the few moments where clarity can be created intentionally.