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Special Edition

Reprinted with permission by SBN Magazine

Small Business News Business Solutions
Proceed Carefully With Peer Review Process
December, 1997
By Terry Wall, President, T.G. Wall Management Consulting

My staff wants to start a peer review process in our department, which is part of a large, progressive financial institution. How do I go about implementing this?

The peer review process gives co-workers a voice in the appraisal of employees, so it has significant impact on employees. Therefore, proceed carefully in designing and implementing the process, and follow these three steps.

First, consult employees and management on the design and implementation of the peer review process. Opposition from either group will lead to failure, and opposition is virtually guaranteed if both sides have not contributed to design and implementation.

Next, clearly identify the problems being solved by the peer review process. Is the current performance appraisal system perceived as unfair? Not motivating employees to improve performance?

Finally, use the problems identified above to decide the specifics of the peer review process. Who actually rates whom? What elements are rated? How is the rating done? Painstakingly work out all the details.

Peer review is popular because, in the right context, it is effective. But be very careful when making the many critical decisions. Consult your Human Resources department for the necessary expertise, so that the peer review process solves problems and runs smoothly.

(If you like this article, check out the other articles on the Special Edition! page.)

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