Marco Dorantes recently linked to a great article by Watts Humphrey, who worked on IBM's OS/360 project: Why Big Software Projects Fail. Watts opens with an analysis of software project completion data from 2001:
I began revolution with 82 men. If I had to do it again, I do it with 10 or 15 and absolute faith. It does not matter how small you are if you have faith and plan of action
Yet another example of “performance reviews considered harmful”, involving a donkey. And get your minds out of the gutter.
http://headrush.typepad.com/creating_passionate_users/2005/01/giving_a_damn_a.html
I can’t really add much to this other than to offer my experience of working for a company that understood none of the above.
An interesting point mentioned regards “remove barriers… [to] right to pride of workmanship”. Sure there are lots of people working for the paycheque or putting in their time, but there are also those who take pride in their craft. These people, and I count myself among them, just want to be treated fairly. We’ll work overtime if it’s necessary - you don’t have to ask. Just treat us fairly afterwards and we’ll bug check and fix every last remaining line of code until it is perfect, so long as the work is treated with the care and respect that it should.
Great article.
P.S. Antenna Audio is a bunch of charlatan jokers. 
- just thought I’d mention that.
Peter Scholtes: “Dr. Deming said of Performance Appraisals, ‘Stop doing them and things will get better.’ He was correct. Many organizations, however, wonder what to do instead.”
For those that do require “some alternative” Peter included some good ideas in The Leader’s Handbook (see chapter 9 "Performance without Appraisal pages 293 to 368). This chapter has excellent material for any manager.
For more of my thoughts see my post - Performance without Appraisal: http://evop.blogspot.com/2005/04/performance-without-appraisal.html .