From annual reviews to continuous coaching

Every company has its grounding values. For us at Lilly, it’s a simple quote from our founder, Colonel Eli Lilly: “Take what you find here and make it better and better.” It serves as a timeless reminder and a gentle nudge that, no matter how well something works today, tomorrow offers another opportunity to improve it. We bring that mindset into every part of the organization, including human resources.

One area we have focused on improving is our approach to feedback and performance coaching.

When I think about our journey at Lilly, one of the biggest shifts has been trading the once-a-year performance review for something much more dynamic: ongoing coaching and feedback. The old model simply didn’t create momentum. Waiting 12 months to hear how you are doing is like getting weather forecasts after the season ends. The information may be interesting, but it’s not very helpful.

Continuous coaching builds trust, clarity, and psychological safety. It also doesn’t require a big formal meeting. Some of the most meaningful coaching moments happen during a two-minute hallway chat right after a project wraps up. Small moments can have a big impact.

What Lilly’s coaching system looks like

We have designed a structure that includes quarterly check-ins, although the real value appears in everyday touchpoints. These micro conversations keep everyone aligned. We start the year by defining goals and describing what “great” looks like. Each check-in becomes a small pause to adjust, troubleshoot, and celebrate progress.

Think of it as project management for people. It breaks the year into manageable pieces, keeps documentation current and eliminates those dreaded year-end surprises. It creates a fairer experience for employees, and it prevents managers from trying to recall details from “that thing that happened in March or maybe April.”

How we equip managers to coach

Coaching isn’t just a skill; it’s a mindset. At Lilly, we invest heavily in developing our leaders as coaches. Every new manager goes through our “Leading@Lilly” program, a six-month journey of workshops and learning. For experienced leaders, we have annual global curriculums focused on coaching skills, plus local workshops and learning labs. These aren’t just lectures; they’re hands-on, practical sessions where we share best practices and learn from each other. The goal is to make coaching second nature, not a box to check.

A true coaching culture does not move in only one direction. While managers give feedback, employees are encouraged to share their perspectives as well. We use anonymous upward feedback tools, but we also encourage direct conversations.

For example, I regularly ask my team what is working and what I should adjust. None of us are perfect, and pretending otherwise slows learning. When leaders model openness, it sends a clear message that everyone is learning, growing, and improving together.

Our workforce spans multiple generations, and each brings different preferences for how and when they want feedback. Rather than making assumptions, we focus on meeting people where they are. We do this by offering a variety of channels and tools, allowing employees to choose the options that best support their individual needs. That’s why our Development Days are designed as a menu of possibilities — no two experiences are the same. Each employee enjoys a unique day, fully customized based on their goals and preferences.

Measuring success

We track turnover, promotions, lateral moves, and pulse survey results. These insights help us refine our approach and stay connected to the employee experience. We treat feedback as the gift it is, even when it’s wrapped in honest suggestions.

Each cycle gives us a chance to reflect, adjust, and improve. It’s continuous, iterative, and far more effective than a single annual form that sits untouched for most of the year.

If you’re considering a shift to continuous coaching and regular performance check-ins, begin by explaining the “why.” Be transparent about how the change benefits employees and managers. Involve people early. They often have ideas that make the system stronger and more practical.

There is no one-size-fits-all all solution. The best approach is the one that aligns with your culture and your people.

The future of coaching and feedback

Coaching will continue to grow in importance as AI and digital tools make feedback more accessible, and at Lilly, we are already using virtual coaches and AI-based tools to help employees refine communication and get real-time insight. As these technologies become more advanced, they will help streamline feedback, simplify documentation and surface insights faster. Thankfully, they still cannot replace the human touch. No algorithm has figured out how to deliver the perfect encouraging smile during a tough conversation, although some are getting suspiciously close.

Key takeaways for HR leaders:

•           Coaching is one of the most important hats a leader wears.

•           Frequent, high-quality feedback is fairer and more effective for employees.

•           Coaching doesn’t have to be time-consuming or overly structured; trust and relationships make it impactful.

•           Leaders should seek feedback for themselves and use survey insights to drive continuous improvement.

•           Technology will enhance feedback, but human skills and connections are irreplaceable.

 Building a coaching culture is about systems, trust, and a shared commitment to continuous growth for employees and leaders. It’s not just a process. It’s a partnership and one that truly becomes “better and better” over time.

Francois Gilbert is the Vice-President Human Resources at Lilly Canada.