Build and retain high performing teams

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I. Intro

Few factors have as much impact on the success of your startup or tech company as a high-performance team of A-players. No matter how often you hear phrases like "holding each other to high standards" or "startup hustle culture"—without a clear, scalable, and data-driven process, your team won’t reach its full potential. This is exactly where modern performance management comes into play.

Imagine this...
... your team has clear definitions of what makes an A-player. You know exactly who the current high performers are and what it takes to maintain – or even improve – that level of performance. (See example: Management / HR Analysis)

At the same time, regular assessments track how your team is developing and which talents have the potential to reach the next level. With this approach, recruiting top talent becomes data-driven, while also providing a solid foundation to nurture high potentials and turn them into A-players. (See example: Leadership Analysis)

By offering a structured career perspective, you not only give existing talents clear development opportunities but also turn your startup into a magnet for the top 0.1% of talent.

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Example: Management / HR Analysis

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Example: Leadership Analysis

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“Performance management involves embracing employees’ strengths and being open to innovative ideas – even ones that change the status quo.” – Steve Jobs, Co-founder, Apple Inc.

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Why Performance Management is Essential

In the early stages of a company, performance management is rarely a priority. However, as your business grows, its fundamental importance becomes increasingly clear.

Consider this analogy: conducting feedback conversations without a structured framework or clear goals is like attempting to launch a manned rocket into space without precise measuring instruments or controllable thrusters—an extremely risky endeavor with an uncertain outcome. In contrast, performance management functions as a state-of-the-art navigation and analysis system for the rocket. It provides precise data, clear metrics, and enables targeted adjustments to ensure the desired trajectory is safely achieved.

Underperformance and inefficiencies are simply unaffordable—whether in your company or in a rocket.

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Performance Management =/= Performance Enablement

Yes, even the annual completion of questionnaires in large corporations is labeled as "Performance Management." But let's be honest: for many employees and managers, it's nothing more than tedious administrative work. And they’re not wrong—traditional systems are often inefficient, uninspiring, and fail to drive real performance.

The landscape has shifted. In the 80s and 90s, rigid, competitive, and often impersonal performance management systems (such as those at General Electric) were widely used. Later, companies moved toward eliminating performance evaluations altogether. However, that approach didn’t work either. The key lies in a people-powered approach that prioritizes employee development.

In this playbook, we’ll show you how to implement a modern and effective strategy in your company—what we call People-Powered Performance Enablement. It’s about continuously supporting employees with coaching, real-time feedback, and clear development paths so they can strengthen their skills, achieve their goals, and contribute significantly to your company’s success.

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Why We Deserve Your Attention

We bring together the expertise of DONE!Berlin and Sprad. DONE!Berlin is one of the leading HR consultancies, working with clients like Airbnb, N26, Gorillas, and H&M. Their mission is to help companies build modern People & Culture departments and strong organizational structures and processes that are equipped to handle growth challenges and the future of work.

With over half a decade of experience in developing recruiting and performance management software, Sprad has already supported scale-up clients such as Zalando and Blackshark.

Together, we have helped hundreds of startups and scale-ups build high-performance teams and retain top talent.

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Our approach is also based on best practices from companies like Spotify, Adobe, and Revolut, as well as research from McKinsey. While Spotify and Adobe focus on individual employee development, Revolut places a stronger emphasis on standardized evaluation processes. Depending on your company’s culture and growth stage, you will find approaches here that fit your needs.

This playbook provides you with a clear, structured framework—from processes to technical implementation—that enables you to get started within a few weeks. Practical examples from companies like Spotify and Revolut illustrate how to tailor performance management to align with your specific business goals and company culture.

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Who Should Own Performance Management?

High-performing teams should be a top priority—which is why performance management must be firmly anchored within the founding or management team. In the early stages, it can be closely integrated with HR, whereas in later growth phases, a dedicated role or even an entire team may become necessary. The most important thing: Someone must take ownership—not just to manage the system but to continuously develop and optimize it.

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II. Der A-Player Blueprint

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Your Definition of an A-Player

"What gets measured, gets improved." – Peter Drucker

A high-performance organization is built around A-Players. This means focusing resources on identifying, developing, and retaining top talent while ensuring that low performers are phased out efficiently. This approach keeps the team on a growth trajectory and enables consistently outstanding results.

To successfully recruit, develop, and reward A-Players, you must first have a clear understanding of what defines an A-Player.

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Creating a high-performance culture starts with a clear definition of top talent. Vague ideas or gut feelings are not enough—you need measurable criteria that everyone on the team can understand.

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Three Dimensions for Evaluating A-Players

To keep the evaluation process simple and structured, we recommend dividing the criteria into three key dimensions:

1. Behavior & Culture
   What behaviors define an A-Player?
   This dimension focuses on company values and cultural fit. An A-Player doesn’t just contribute to company culture—they actively embody it. This could mean taking initiative, solving problems proactively, and handling feedback constructively.
2. Results & Performance
   What outcomes does an A-Player deliver?
   The focus here is on work quality and speed. An A-Player consistently delivers outstanding results, meets or exceeds goals, and completes projects efficiently.
3. Role-Specific Skills
   What specific skills are required for the role?
   Every position in a company requires different hard and soft skills. For example: An A-Player in tech might stand out through deep technical expertise and innovative problem-solving. An A-Player in sales might excel in persuasive communication and closing deals.

Each dimension consists of key attributes, which are further broken down into 4-5 levels with clear descriptions to ensure consistent evaluation.

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Beispiel aus der Praxis:

Spotify: mastery, achievement, and behavior „Performance, to us, is not only about reaching the goal. It’s also about how you got there, growing in your profession, and being a role model.“

Revolut: Culture, Deliverables, Skills „We found that each of these three aspects is essential and must be measured separately. Take a software engineer for example. Even if their performance is great, failing to align with your company culture will cause toxic team dynamics and friction down the line. In another case, if they consistently deliver on the projects assigned and are a great fit with company, how do you know they’re ready for the next level? You need a solid understanding of their skills versus those required in a more senior role to be able to decide.“

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Why Clear Evaluation Criteria Are Essential

Only when these dimensions are clearly defined and aligned with the specific requirements of your company can you establish a solid and fair evaluation system. This creates transparency, provides leaders with a clear foundation for decision-making, and enables you to take data-driven actions to develop your team effectively.

In the next section, we will show you how to implement an evaluation system based on these three dimensions and how to integrate it into your processes.

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Behavior & Culture

We recommend translating your company values into concrete, expected behaviors. This ensures that company culture does not remain an abstract concept but becomes tangible for all employees. By providing clear examples, employees can better understand how to actively embody and implement the culture in their daily work.

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[fs-toc-omit] Example: Innovation  

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Performance / Results

Based on Revolut’s model, we recommend differentiating "performance" into specific competencies:

1. Speed: The ability of employees to meet deadlines.
2. Quality: Measured by the number of revisions required to complete a task – ideally, the work should be finalized after the first version.
3. Complexity: Describes how novel a task is – routine tasks have the lowest complexity, while the most complex tasks have no existing templates within or outside the company.

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[fs-toc-omit] Example: Speed

Role-Specific Skills

Skills are the key competencies required for a role, including both hard and soft skills. They serve as a clear guideline and can be used for various purposes:

• Employees can use them as a roadmap to focus on their development and grow into the next role.
• Recruiting teams can leverage these requirements to identify the right talent and assess their skills effectively.

Take, for example, a Frontend Developer. Their core competencies can be divided into three key areas: a) Deep understanding of web technologies such as HTML, CSS, and JavaScript b) Experience with modern frameworks like React or Angular c) A strong sense of user experience (UX) and clean design. These areas can be clearly defined and evaluated separately.

We recommend that department heads – such as the CTO or Head of Sales – be responsible for defining the required competencies and level descriptions. If software is used, skill frameworks can be automatically generated and maintained based on job descriptions.

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[fs-toc-omit] Example: Frontend Developer

[fs-toc-omit] Skill 1: Deep understanding of web technologies (HTML, CSS, and JavaScript)

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[fs-toc-omit] Skill 2: Experience with modern frameworks (React, Angular, or similar).

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[fs-toc-omit] Skill 3: Sense for User Experience (UX) and clean design.

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Career Progression Framework / “Career Maps”

Once a company reaches the appropriate level of maturity and size, we recommend developing a Career Progression Framework to provide employees with clear career perspectives and structure the personnel development process.

This means defining the required skill levels (as well as other performance dimensions) necessary for promotions, such as from Junior to Mid-Level or from Mid-Level to Senior. This also helps in recruiting by allowing a precise evaluation of the expected competencies based on seniority levels.

We recommend that department heads—such as the CTO or Head of Sales—define these competencies and level descriptions. Additionally, software can automate this process.

Our Recommendations:

1. Clear and Objective Criteria
   • The path to promotion should be transparent and based on objective performance metrics.
2. No Promotions Based on Tenure
   • Promotions solely based on time spent in the company are ineffective and costly.
3. Seniority Over Titles
   • Instead of creating new roles or titles, employees should progress to higher seniority levels with expanded responsibilities, higher performance expectations, and better compensation.
4. Clear Triggers for Promotions
   • Employees who significantly exceed performance expectations should automatically be considered for promotion.
5. Promotion as a Performance Incentive
   • Promotions should reward A-Players and motivate them to perform at their best. They should not be used as a retention tool.
6. No Premature Promotions
   • Employees should only be promoted when they are truly ready to avoid setting unrealistic expectations within the team.

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Talent Bar & Ranking ^{Competitive Culture}

Instead of using performance reviews solely as a basis for personal development, compensation decisions, and promotions, evaluations can also be integrated into a ranking system to directly determine promotions or terminations. This concept, inspired by Jack Welch's Performance Management System from the 1980s and 1990s, categorizes employees into performance tiers (e.g., top performers, average performers, and low performers). The goal was to create incentives to drive excellence while ensuring underperformers either improve or exit the organization.

Critics argue that this model often instills fear among employees, fosters the wrong motivations, and lacks a human-centric approach. Nevertheless, some successful startups (such as Revolut) continue to operate with such systems today. While we would only recommend this approach with caution, we include it in this playbook for the sake of completeness.

The Talent Bar defines the minimum performance requirements based on the evaluation dimensions outlined above, tailored to employees' seniority levels. For example, a Senior employee must achieve at least an "INTERMEDIATE" rating in Speed.

After evaluations by leadership and calibration by the Performance/HR team, employees are categorized into three groups:

1. Above the Talent Bar: Exceptional performance leads to promotions or bonuses.
2. At the Talent Bar: Solid performance meets expectations but leaves room for improvement.
3. Below the Talent Bar: Performance that does not meet expectations requires targeted development efforts or consequences.

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Implementation (Templates)

A performance management system is only effective if it is clear and consistent. Without well-defined standards, employees may struggle to understand what is expected of them to advance, while leaders risk losing valuable time and direction.

Our Recommendations:

1. Focus on the essentials: Limit the evaluation criteria to 3–5 key attributes, ideally three.
2. Set clear goals for everyone: Define observable behaviors to help managers assess employees fairly and provide clear development targets.
3. Keep it concise and specific: Describe each attribute precisely and separate behaviors clearly. Each behavior should be evaluated in a binary format (Yes/No).
4. Align performance with company priorities: Attributes and behaviors should directly contribute to key business objectives.
5. Use a standardized rating scale: Maintain consistency by using the same evaluation scale across all assessments. Example: Poor, Basic, Intermediate, Advanced, Exceptional. "Poor" indicates unacceptable performance, while "Exceptional" represents the highest standard in the field.

Practical Application:

1. The evaluator moves through the attributes starting at the lowest level until they reach the first "No" (behavior is not observed).
2. The evaluator selects the highest level where all attributes receive a "Yes" (behavior is observed).

Outcome: Less effort, increased comparability.

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Templates to Get Started

To provide a clearer understanding of our approach and facilitate initial implementation, we are currently developing free Excel templates based on our recommendations. These include:

• Performance review questionnaires
• Checklists for 1:1 meetings
• Question catalogs for development talks

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Who Are These Templates For?

These Excel templates are ideal for running initial tests within a team. Small teams (fewer than 10 employees) can continue using them effectively in the long term. However, larger teams will benefit from dedicated software solutions, which significantly improve efficiency in execution, analysis, and tracking. For concrete examples of performance management software, check out the next section of this playbook.

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III. Process: Achieving Impact with the Right Formats

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How to Implement Performance Evaluation in Practice

Simply put, follow this process:

1. The manager sets clear expectations.
2. Employees set clear goals (ideally only 2-4 per quarter).
3. Real-time feedback & coaching from the manager.
4. Performance & goal review leads to concrete learnings & action items.
5. Repeat.

Below is a recommended structure regarding the process, frequency, and objectives of the key formats. Keep the framework overview (see above) in mind to determine which format and frequency best suit your phase.

Check-In

We recommend conducting performance check-ins or reviews on a quarterly basis to ensure a short feedback loop. The later the phase or the more extensive the review (e.g., comprehensive self-assessments), the more it can be reduced to a semi-annual cycle—at the cost of a faster feedback loop.

We recommend at least two reviews per year to clearly separate development and compensation.

The review frequency can either be based on the employee’s start date, but we recommend a unified schedule for all employees, particularly for a quarterly rhythm.

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Process

Questionnaires are sent out and evaluated (1-2 weeks).

Assessment questionnaires are distributed to managers (and optionally to employees for self-assessment). Ideally, this process should be automated via software to reduce effort and minimize errors.

Calibration (1 Week)

To ensure consistency and fairness, the performance team or the responsible HR personnel should review the results. Are there any outliers, either too high or too low? Have any evaluations suddenly improved or worsened dramatically? If so, follow up with the manager and adjust ratings if necessary.

At this stage, founders or management should also be involved to identify areas requiring additional resources or attention (e.g., teams that consistently fall below expectations).

Competitive Culture: If using a Talent Bar (as explained above), it should be ensured that A-Players make up no more than 15–25% of the workforce. Some managers tend to rate too generously, so it is important to review and adjust ratings afterward as needed.

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Announcing Results & Providing Feedback (1 Week)

1. Feedback – The results of the performance reviews are shared with employees and discussed in a follow-up 1:1 meeting with the manager. The goal of this conversation is to define action items for the next check-in based on the feedback.

2. Reviewing Achieved Goals – Managers and employees discuss the goals that were set. They analyze why certain goals were achieved or not, whether those goals were valuable, and how better goals can be set for the next cycle.

3. Defining New Goals – New goals for the upcoming period (e.g., the next quarter) should be clearly formulated and prioritized:

• The manager communicates expectations or overarching goals (e.g., OKRs – particularly useful in a more mature planning structure).
• Together with the manager, employees define a maximum of 2–4 SMART goals (specific, measurable, achievable, relevant, time-bound) that clarify their individual focus and contribution.

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Recommendations for Effective Feedback Conversations

1. Constructive Feedback:
   • Present observations specifically and descriptively.
   • Clarify the impact of behavior on results.
   • Focus on concrete, changeable behaviors, not personality traits.
2. Identify Root Causes: Ask yourself as a leader whether performance issues stem from a lack of motivation, missing skills, or both, and adjust interventions accordingly (e.g., training, coaching, new roles, or performance improvement plans).
3. Leverage Strengths: Identify A-Players and work to retain them through recognition and development opportunities.
4. Encourage Dialogue: Ensure that the conversation is a two-way discussion. Test assumptions, actively listen, and clarify misunderstandings.

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Implementation & Technology

Software can effectively support managers in preparing and conducting feedback conversations. Modern AI-powered software for Performance Enablement / Management offers three key advantages:

1. Personalized Agendas – Tailored to the individual context of employees (goals, ambitions, past reviews & meetings), saving time and making discussions more productive. Useful approaches include:
   • Highlighting differences between self-assessment and manager evaluation.
   • Recognizing progress and addressing deviations from expectations.
   • Konkrete Vorschläge für Entwicklungsmöglichkeiten (z. B. Schulungen) machen, um Lücken zu schließen.Providing concrete development recommendations (e.g., training) to close skill gaps.
   • Management and HR strategies can be quickly implemented by standardizing check-in agendas across the organization while still allowing for individual adjustments based on employees' needs.
2. Transparent Documentation: Progress, challenges, and priorities are directly recorded and remain accessible at any time.
3. Analysis by the Performance/HR Team & Management: Key workforce questions can be answered, and targeted actions derived: What defines an A-Player? What steps are necessary to retain top talent? Which development initiatives have the greatest impact? What skill gaps require urgent attention?

Well-structured and thoughtfully executed check-ins not only lead to clearer conversations but also improve long-term employee performance.

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1:1 Meetings

Regular, confidential 1:1 meetings between managers and employees are a key component of effective performance management or performance enablement. They provide space for feedback, coaching, discussion of progress, and resolution of challenges.

Rhythm: We generally recommend allowing managers the flexibility to set the meeting rhythm individually. However, clear guidance should be provided: Our recommendation is to hold meetings every 1–4 weeks, depending on the company’s growth phase.

Efficient structuring with templates & technology

Use a standardized template and, if possible, supporting software to create individual agendas based on the employee’s context (goals, ambitions, past reviews & meetings). This makes meetings more efficient and structured. As mentioned earlier, this approach saves managers time and ensures more productive and well-organized conversations.

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Contents of a 1:1 Meeting:

• Discuss progress: Where do employees stand in relation to their goals?
• Identify obstacles: Are there current challenges, and how can the manager provide support?
• Set new priorities: What are the next steps and key focus areas?

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Implementation / Technology

Tools provide targeted support through:

• Individualized agendas: Automated agendas with relevant information on progress and goals facilitate a smoother conversation flow.
• Traceable documentation: Progress, challenges, and priorities are directly documented and accessible at any time.

Result: Well-prepared and structured 1:1 meetings lead to clearer outcomes, faster problem-solving, and improved employee performance.

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Development Talks (1-2x per year)

Development Talks are primarily for employees. They provide a valuable opportunity to receive and give feedback without pressure – the focus is on being heard, receiving recognition, and identifying areas for improvement. These conversations serve as a chance for reflection and personal development.

Our recommendations:

• Timing: Conduct Development Talks only after at least 1–2 check-in cycles, once employees have a clear understanding of their performance.
• Employee-driven: Employees should initiate the conversation, gather feedback from colleagues, and set the agenda themselves.
• Focus: The emphasis should be on future growth and potential rather than past performance.

Even with continuous feedback, we recommend holding two Development Talks per year to align employees’ long-term development goals and personal ambitions with the company’s needs.

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Compensation Review (1x per year)

One check-in per year should be linked to a review of salary and promotions. Communicate the timing clearly within the company to avoid frequent inquiries about salary increases.

Unsere Empfehlungen:Our recommendations:

• No direct link between goals and salary: Goals can be discussed in the performance review, but they should not be directly tied to salary increases (exception: highly revenue-driven roles).
• Separate salary and performance reviews: If possible, conduct salary discussions separately from performance evaluations to keep the focus on actual job performance.

This separation ensures that performance reviews remain centered on employee development and growth rather than solely on salary negotiations.

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IV. Actionable Steps: What You Can Do Right Away

Are you asking yourself where to start quickly and easily? How to move into implementation without delay? Then this is exactly what you need: Let’s get specific. These actions can be implemented within days or weeks and will create a tangible positive impact on your company.

1. Clearly Define A-Player Criteria

• Action: Define with your leadership team what behaviors, results, and skills make an A-Player in your company. Use this definition for recruiting and development.
• Tool Tip: Use tools like Google Docs or Notion to document and share definitions with your team.
• Outcome: A clear set of criteria for identifying and developing high performers.

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2. Utilize 1:1 Meetings & Structured Feedback Processes

• Action: Schedule regular 1:1 meetings between managers and employees and establish a structured feedback system based on the A-Player criteria (behavior, results, skills) with a strong focus on manager and peer feedback.
• Tool Tip: Use a simple template in Google Calendar or specialized tools for meetings and feedback processes like Sprad or Leapsome.
• Outcome: Structured development conversations with clear progress tracking and action items, along with a transparent and fair feedback system.

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3. Alignment on Goal Setting & Documentation

• Action: Set fixed timeframes for goal-setting and define clear SMART goals (2-4 per quarter) for each team member. Document action items and ensure progress is reviewed in regular 1:1 meetings.
• Tool Tip: Tools like Sprad, Leapsome, or 15Five help with goal setting, automating check-ins, and structured progress tracking.
• Outcome: Clear and binding goals with continuous progress monitoring and fewer operational inefficiencies.

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4. Introduce a Simple Performance Dashboard

• Action: Create a dashboard displaying key KPIs (e.g., goal achievement, engagement score, feedback quality).
• Tool Tip: Use Google Sheets or a BI tool like Tableau or Power BI.
• Outcome: Transparency and data-driven decision-making.

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5. Test & Iterate with a Specific Team

• Action: Test new initiatives with a small group before rolling them out company-wide. Analyze results and feedback to refine the process. Even after a full rollout, continuous review and optimization remain crucial.
• Tool Tip: Document results and learnings in Notion.
• Outcome: Iterative improvement before and after implementation.

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V. Closing Thoughts

This framework is by no means set in stone. It serves as a foundational structure that you can effectively build upon. The key is to continuously question and improve your system.

Even though we present various perspectives in this playbook, we want to give you a clear recommendation: Stay open to new approaches and experiment with alternatives.

One example could be not sharing ratings directly with your team but instead using them primarily as a reference point for yourself as a leader. This way, you can better understand what your team needs. Spotify follows a similar approach with its so-called "Talent Snapshots."

Ultimately, we believe that transparency prevails and that feedback can be highly valuable for employees—hence our recommendation. However, your company culture may differ. Find out what works best for you and your team.

Now it’s your turn! Define your individual A-Player framework. Implement the right processes that fit your company’s current growth stage. Use a platform that helps you track, document, and analyze—such as Sprad, the People-Powered HR platform for companies like yours.

Now, there’s only one thing left to do: Put your mission into action—with a team that makes the impossible possible.

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