I still remember running my first performance review as a young manager. It was a painful ordeal we just needed to get through. But we were following best practice so it had to be done, right?
Having a competency framework seems to make sense. To link individual performance to the goals of the business we need a list of competencies: the knowledge, skills, judgment, and attributes people need to perform a job. With a standard set of competencies for each role in the business people know the kind of behaviors the organization values and requires to achieve its objectives. A yearly performance review framed around the competency framework completes the loop ensuring the organization operates like a well oiled machine.