There's a distinct trend in the annual performance review. It's not that they are dead...it's that they're not enough. Marcus Buckingham and Ashley Goodall's Harvard Business Review "Reinventing Performance Management", suggests that what managers should be focused on is frequent, focused feedback on a regular basis:
"Our design calls for every team leader to check in with each team member once a week...If you want people to talk about how to do their best work in the near future, they need to talk often. And so far we have found in our testing a direct and measurable correlation between the frequency of these conversations and the engagement of team members. Very frequent check-ins (we might say radically frequent check-ins) are a team leader’s killer app."