The key elements of agile (say Scrum) methodology of software development is the team is cross-functional, collaborative and self-organized. Means, in Scrum, the entire team is responsible to execute the Sprint tasks; not the individual member of the team. So, the success or failure of the Sprints is based on the cumulative performance of the team. There is, however, a problem in judging an individual's performance; because each team member is not highlighted much during the product development.
So, what should be fair way to do the performance review of the individual members in the team? Consider this:
1. Allocate certain points to team's performance: Based on management's discretion attribute 30-50% of individual's performance to the team's performance. There is no individual heroism in the project. The project will fail if the members of the team are not helping each other. Only if members have acted to their full potential, the project would be a huge success. So, it is fair to attribute project's success or failure to the individuals in the project.
2. Allocate rest of the points to the individual's performance: Having said that the team fails or succeeds together, you should not undermine individual performance and training needs. So, allocate rest of the percentage to the individual's functional deliverables, product/ domain knowledge, collaboration etc.
3. Do a proper benchmarking and normalization in the team: If the project is 2 on the parameter of 5, you cannot expect somebody is 5 out of 5 in the project. It would be an exception. So look into such an issue carefully and do a proper benchmarking.
Phew, performance review is a tough job. Isn't it?
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