To have effective performance and talent management systems, you need to combine performance reviews with learning and development, as well as career and succession planning.
An article published on the Houston Chronicle website makes the point that:
“Succession planning is the identification of job vacancies that can be expected to occur through retirement or attrition and the strategic consideration of where and how internal candidates might fill those vacancies. It involves assessing job requirements and skills of existing employees and then seeking to fill the gaps between needs and skills with targeted training and development activities.
Succession planning can be an important way to identify employees who have the current skills--or the potential to develop skills--that can help them move up in an organization, or on to other positions. In addition, the process of succession planning can help to identify other areas of performance where employees may be weak and where training could help to manage and improve performance outcomes.”