Doerr challenges the effectiveness of annual performance reviews, despite these reviews being a traditional method of measuring employee performance. He claims that these reviews are futile in driving business success and employee growth. He proposes an alternative: CFRs, which stands for conversations, feedback, and recognition. CFRs are a form of continuous performance management relying on regular, ongoing feedback between managers and employees.

Doerr encourages managers to set regular one-on-one meetings with their team members to provide opportunities for conversation. In giving feedback, he emphasizes constructive feedback, focusing on specifics that can be improved. Lastly, he believes that recognition, or acknowledging and celebrating achievements, is a crucial aspect of performance management. He claims that recognition fosters a meritocratic culture and motivates employees to continue performing well.

Doerr includes a case study of Adobe, featuring writing by Executive Vice President Donna Morris, as an example of a company that did away with traditional performance reviews.

In 2012, Morris declared that Adobe would abandon annual performance reviews and replace them with a more continuous and feedback-oriented approach. The result was a more flexible approach, which Adobe termed “check-ins,” that focused on goals, feedback, and career development.

Doerr says that since Adobe implemented this approach in 2012, the company’s attrition has noticeably dropped.