How are others designing the process and rating components? We are revamping our performance management process. We are considering having ratings for goals based on our company strategy and ratings based on our values. We plan to use a 5-point rating scale.

We no longer have a rating scale on our performance evaluation. In the past we saw that having a rating scale caused our team members to be stuck on the “score” they were getting or giving their employee. Instead we introduced a leadership and performance matrix similar to a 9 box. The discussion became more about leadership and the how of achieving performance.

We are utilizing a 5-point rating scale for performance management. A significant step we took a year ago was to standardize all goals and weightages according to the specific practices and types of businesses we operate. Common goals across our business units include values, culture, knowledge management, and learning agility. This 5-point rating scale is consistently applied, even during the interview process for external candidates. Maintaining this uniformity allows us to effectively measure performance for both new hires and existing employees using the same criteria.

With some orgs I have worked with we have removed ratings altogether because people often get fixated on the rating vs their output making it more of a tick box exercise. In its placed we added coaching questions focusing on the what and how to help drive more meaningful performance conversations.
My personal view is that ratings are outdated however I can see why orgs still use them. Happy to share more if interested.

We have a 5-point scale, as well, which focuses on overall performance.  We do not yet rate company strategy goals. I hope we get there soon!

Hello! 
We do the same using a 5 point scale. Some goals are cascaded top down based on strategy and others are standing goals linked with our values. We have 360s and a continuous feedback portal to gather objective feedback as a source of input for the behavioural rating.