Performance review: Anupam Mittal says what ‘smart employees’ are doing and why the system is wrong

As performance review season gets underway across organisations, employees are busy evaluating their performance and setting goals for the next cycle. However, entrepreneur and Shark Tank judge Anupam Mittal believes that the way most companies approach this process is fundamentally flawed.

In a recent LinkedIn post, Mittal described this period as “sandbagging time” — when employees intentionally set targets they know they can comfortably achieve. According to him, this behaviour is not driven by a lack of ambition, but by the way companies structure their performance systems.

Mittal pointed out that in many organisations, targets, performance reviews, and incentives are tightly linked. This creates a system where employees are penalised for missing ambitious goals, while those who exceed safer, more conservative targets are rewarded. Over time, this encourages individuals to play it safe.


As he explained, “smart” employees tend to act rationally within such a framework — they negotiate their targets downward and then outperform them. While this may appear as strong performance on paper, Mittal argues that it creates a false sense of success.

He noted that companies may see green quarterly results, accurate forecasts, and a general sense of control. However, beneath the surface, the organisation may not be truly pushing its boundaries or achieving meaningful growth.

Instead of calling for more motivation, Mittal stressed the need for better system design. He suggested that companies should decouple targets from performance evaluations, ensuring that employees are not punished for setting ambitious goals.

He also highlighted the importance of recognising effort and difficulty, not just outcomes. Rewarding stretch goals, he said, can encourage employees to aim higher, while consistently safe targets should not be celebrated.

Defending employees, Mittal added that sandbagging is often a response to flawed incentives rather than individual weakness. His post sparked discussion online, with some users noting that implementing such changes at scale could be challenging.

Mittal concluded by raising an important question for organisations: how should performance truly be measured in a way that drives genuine progress?