Why Department Heads Deserve Their Own Review Process

You wouldn’t review a coach the same way you’d review a player. So why do we often evaluate department heads with the same forms, the same metrics, and the same ranking systems as their teams? It’s a well-meaning mistake, treating everyone equally regarding performance reviews. But equal doesn’t always mean fair. If you want leaders to lead, not compete, it’s time to separate their review process. Same Cycle. Different Lens. Let’s be clear: we’re not suggesting you build a different universe for your leadership team. The review cycle, tools, and structure can remain the same. But the criteria? That’s where the change needs to happen. Leaders carry different responsibilities like strategic alignment, cross-functional coordination, team development, and decision-making under pressure. Evaluating them with the same lens as their direct reports can water down the very behaviors you want to grow. It can also make comparisons feel misaligned or, let’s be honest, unfair.

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What a Leadership Review Should Look Like

1. Create a separate “Leadership Review” template.

Apply it only to department heads, one per function. This keeps their evaluation focused and relevant. This way, their evaluation focuses on what matters to their unique role.

2. Continue using the 70/30 split.

• 70% OKRs – aligned to business outcomes
• 30% competencies – focused on leadership behaviors

But make sure those competencies reflect what leadership actually looks like. The key here is to ensure those competencies reflect what outstanding leadership looks like in your organization, not generic traits, but the real actions and qualities that move the needle. Examples of leadership competencies to include:

• Coaching and delegation
• Cross-functional influence
• Strategic alignment
• Conflict resolution
• Decision-making under uncertainty
• Building team capacity

These aren’t just “nice-to-have” traits. They keep your organization healthy, scalable, and aligned under pressure.

3. OKRs for Leaders: Think Bigger

Just like their teams, leaders should be accountable to OKRs. However, their key results should reflect broader ownership and cross-functional impact. Examples might include:

• Ensure successful integration between in-store and online fulfillment channels.
• Reduce SLA escalations by 25% through process alignment across Sales and Support.
• Grow marketplace order volume by 30% via operational streamlining.

Notice how these OKRs aren’t about doing the work. They’re about making the work work better, across teams and systems. That’s leadership.

Why This Separate Leadership Review Matters

Creating a separate but parallel review for your department heads powerfully conveys that leadership isn’t just about hitting goals. It’s about enabling others to hit theirs. When you design performance reviews that reflect this, you reinforce the behaviors you want to see more of: clarity, coaching, collaboration, and long-term thinking. You’re also giving your best people the feedback they need to keep growing.

Final Thought: Measure What Leaders Make Possible

Your department heads aren’t just delivering value, they’re creating the conditions for others to deliver. That deserves its own evaluation process. One that respects their scope, responsibility, and impact. So yes, use the same tools. Keep the same timing. However, leaders should be given a review that matches the role because leadership isn’t about rising above the team. It’s about building one that grows with you. Ready to improve leadership reviews? Let’s talk.

Ready to improve leadership reviews?

Let’s talk