Great to hear how the agile approach transformed HomeAway's culture beyond software development.
We live in a fast paced world and the work place as well as employees have changed. Businesses need to keep up and adjust swiftly. And what is a better way than to empower your employees? You hired them for a reason so give them autonomy and purpose (refer to Daniel Pink) and guide them by 'steering the boat'. Regular 'checkpoints' are essential, indeed, so is engagement which is why there are many new performance management tools embracing a continuous approach.
I commented on performance management for agile teams and referred to companies like Atlassian if you are interested http://www.techrepublic.com/blog/five-apps/five-tools-for-managing-employee-performance-reviews/1174
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