Microsoft removes ratings and encourages collaboration

In 2013, Microsoft took a big step. It removed its previous system of performance management – which used a process known as 'stack ranking' to divide employees into five performance categories along a targeted distribution of ratings – and replaced it with a new approach to performance and development that emphasises collaboration, feedback and rewards for impact. According to Lisa Dodge, Director – Global Performance Programmes, the change – now covering its 112,00-strong workforce worldwide – has brought positive results, with over two-thirds of employees and managers expressing satisfaction with the company’s new approach in staff surveys.


Research and written by

  • Organisation profile
  • Who E-reward interviewed
  • A new company culture
  • The old approach to performance management . . .
  • . . . and the new approach to performance and development
  • The three priorities
  • Deliver results differently through teamwork
  • Feedback that helps you learn, grow and deliver results
  • Reward contributions to business impact
  • Connects
  • Framing the Connect conversation
  • Structuring the Connect process
  • Monitoring Connects
  • Providing support for managers
  • Leveraging and contributing
  • Reward decisions
  • Managers feel in control
  • Talent management
  • A positive response

This is the second part of a major E-reward project on 'new' approaches to performance management. It comprises a batch of in-depth case studies designed to highlight how a wide range of disparate organisations are rethinking their approach to performance management.
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