Eversheds Sutherland has scrapped 'formulaic' annual appraisals for all staff, as the firm becomes the latest to rethink its approach to performance management.

The overhaul, which applies to all offices outside the US, has seen the firm introduce quarterly feedback sessions for all fee-earners and staff, with Eversheds encouraging managers to discuss performance issues with their teams on a more regular basis.

Partners and other managers are being trained in the new approach, with management gauging opinion on the shift via two staff surveys so far.

Eversheds Sutherland co-CEO Lee Ranson told Legal Week: "We've had very positive responses to the new system – the historical annual appraisal process was formulaic and involved a lot of paperwork. The process is more dynamic now and keeps people more engaged.

"When we were looking at developing it, I thought back to what I had found helpful when I was a junior associate. It was partners who spent regular time with me and helped me to identify and develop what I was good at that made the most difference.

"We expect people to come out of meetings and have time to talk to their colleagues about their performance. We were very keen to implement something that improved the individual's development as well as the performance of the business as a whole."

Earlier this year Eversheds introduced reverse mentoring for its executive committee, with a view to expanding this to other partners in the future.

Last week, Eversheds posted double-digit increases in both revenue and profit per equity partner (PEP) for its legacy UK business during the 2017-18 financial year.

The firm boosted PEP by 12% from £726,000 to a record high of £812,000, while it took in revenues of £494.6m during the last financial year, up 13%.

Ranson told Legal Week: "We are very pleased with the results, which largely speak for themselves – our performance was strong across the whole international business. Our corporate and real estate practices had a particularly impressive year.

"It has proven our growth strategy is working – based on a conscious effort to spend more time with our clients to best service their needs. Our subsequent lateral hiring strategy and office launches are in direct response to what we heard from them."

The firm is one of a number currently shaking up their appraisal systems, as more and more firms move away from the traditional annual structure for performance reviews. Hogan Lovells recently announced that it is scrapping annual feedback for associates in favour of a new programme that directs associates to proactively seek input from partners and other colleagues about their performance throughout the year.

Meanwhile, Allen & Overy is set to move all of its staff to a new performance management scheme next year, while at the start of 2018 Slaughter and May overhauled its appraisal system for associates, with performance scores dropped in favour of more ongoing feedback and mentoring by dedicated 'continuity' partners.