Let me begin by stating that I’m not a fan of the annual performance review. For most business leaders, managers and employees it’s an incredibly stressful and painful experience that does little foster improved productivity or employee engagement. According to Mercer’s 2013 Global Performance Management Survey, roughly 1 in 3 organizations around the world say that improving managers’ ability to have candid dialogue with employees has the greatest impact on the overall performance of an organization. Mercer’s analysis revealed that the two components of manager skills that matter the most are linking performance to career development and setting SMART goals. Smart goals are specific, measurable, ambitious but attainable, relevant and time bound.