How Vänersborg Municipality Developed Its Performance Review Process – With a Focus on Value Creation and Organizational Impact
In the autumn of 2022, Vänersborg Municipality began work to develop its performance review process. The goal was not merely to digitize an existing process, but to create a more equitable, business-focused, and value-creating dialogue that strengthens both performance and development over time.
The initiative was led by Camilla Andersson, Head of Negotiations responsible for labor law matters and salary reviews, and Malin Öberg, HR Specialist focusing on talent and leadership supply.
”It was really about two things. One was to digitize the conversation. The other was to get to the bottom of the purpose: why do we have performance reviews? What should be discussed in a performance review? Digitalization gave us a greater opportunity to truly review that,”
– Camilla Andersson
From Checklist to Clear Purpose
Before procuring a digital solution, the municipality identified several needs. They wanted a modern and interactive platform where different processes could work together — but above all, they wanted to ensure that documentation and goals would not disappear when managers changed roles.
A central requirement was therefore that the system should follow the employee, not the manager.
“We wanted to move away from important documents ending up in a drawer or disappearing when a manager leaves. The performance review should be part of long-term development, both for the individual and for the organization,” says Camilla.
”Performance reviews can easily grow and start to include everything imaginable. We went back to the fundamental focus of the conversation. What is it that you are supposed to do there — that you don’t do anywhere else? We really turned it inside out,”
– Malin Öberg
Two Perspectives Became a Success Factor
A clear success factor was that the work was driven jointly by two people with different perspectives.
“There have been two of us, with different roles and different approaches. That allowed us to incorporate multiple perspectives and truly quality-assure the content. It became a strength both in the project and in our continued collaboration,” says Camilla.
A Gradual Implementation Over Three Years
The implementation of Grade began with a smaller pilot phase in the autumn of 2022. The municipality allowed five to six managers from different operational areas to test the setup and provide feedback on details before launch.
In December 2022, the system was rolled out organization-wide, but with a clear strategy: implementation would take place gradually over three years.
The approach was structured as follows:
- Year 1: Managers who were ready began using Grade for the forward-looking part of the conversation — that is, setting new goals digitally in the system (evaluation of the previous period’s goals was followed up in the old materials).
- Year 2: Those who had already started conducted the entire performance review in the digital platform, while others took their first steps into the system.
- Year 3: The goal was for all managers to work fully in Grade.
During the first year, a formal training initiative was carried out. After that, Malin was available as support for managers or management teams who wanted guidance and strategic discussion on how to use the system based on their specific needs.
”We’ve provided instructional materials, videos, and support in various forums. And we’ve been very accessible. During certain periods, many managers requested support in their work,”
– Malin Öberg
An important lesson was that a digital performance review must not be reduced to a purely technical implementation.
“Otherwise, it becomes mere digitization instead of digital transformation. This is a change intended to contribute to organizational development — not just to replace paper with computers,” says Malin.
A Streamlined Structure That Helps Managers Stay Focused
In developing the new format, the municipality landed on a clear structure: the performance review is built around 4 + 1 questions, designed to maintain focus on assignment, performance, and development.
“Some may think it’s few questions, but our main question concerns the assignment, goals, and activities for the coming period. That’s why we have performance reviews,” says Malin.
The following two questions focus on conditions:
What resources and work environment conditions are needed to succeed?
What competence development is required to contribute going forward?
“We are here for the residents of Vänersborg. To deliver high-quality services, we need the right conditions — both physically and organizationally. The conversation should help us talk about what actually impacts results,” says Camilla.
Den fjärde frågan är en öppen fråga som ger möjlighet att fånga upp andra faktorer som påverkar arbetet – exempelvis oro eller privata omständigheter – utan att samtalet blir
The fourth question is an open-ended one, allowing other factors that affect work — such as concerns or personal circumstances — to be addressed, without turning the review into a forum for sensitive documentation.
The fifth question is a mandatory compliance question regarding secondary employment.
The municipality has also chosen to include a summary section, which many managers find helpful in wrapping up the conversation and clarifying next steps.
“It Takes 2–3 Years Before It Becomes Truly Valuable”
In the spring of 2025, the municipality conducted a larger evaluation of the performance review process in Grade. The survey was sent to approximately 170 managers and achieved a response rate of 70 percent — which in itself demonstrated strong engagement.
The results showed that managers were generally very satisfied and that Grade and the new format had contributed to clearer structure and higher-quality conversations.
“It became clear that it takes two to three years before you can fully leverage the approach. The first year everything is new, the second year you start to understand the whole picture, and by the third year you’ve completed the entire cycle and see the value in the follow-up,” says Malin.
The municipality also made minor adjustments based on feedback, including clarifying instructions and making linguistic improvements in certain parts of the conversation.
Increased Quality and Better Preparation
The evaluation revealed several clear effects of the new approach:
- Both managers and employees prepare more thoroughly
- The conversation becomes more focused and closer to operational reality
- Employees take a clearer role in articulating their contribution to organizational goals
- The structure strengthens self-leadership and accountability
- Managers find it easier to maintain a clear thread throughout the conversation
“When the questions are few but clear, it becomes easier to stay focused. What we wanted to achieve was a conversation about the right things — not a checklist you simply tick off,” says Camilla.
A Long-Term Support for Development
For Vänersborg Municipality, Grade has become part of a broader initiative around talent supply, organizational development, and equity across the organization.
With a structure that follows the employee over time, and with a clear focus on assignment, goals, and conditions, the municipality has created a performance review process that serves as a concrete tool for leadership, employee engagement, and development.
“We wouldn’t have implemented this if we only wanted to digitize the performance review. There are easier ways to do that. We wanted to achieve something more — and this is a journey that takes time,” says Camilla.
