Replacing a team member can be a difficult and time-consuming process, from sifting through endless resumes to conducting interviews to on-boarding the new person. By effectively conducting formal reviews, supplanted by informal evaluations, project managers can address team members’ weaknesses, reward their good work, set future goals and implement an improvement plan, thus rendering the replacement of a team member less likely. This article explores ways to take the guesswork out of three evaluation conundrums when it comes to assessing team members’ performance. In doing so, it reports the results of a 2011 study–conducted by Harris Interactive–showing that organizations risk 250 percent of an employee’s salary in turnover costs because of poor performance management processes, including performance reviews. It then identifies three challenges that come up frequently during the review process and provides a solution for each challenge. Accompanying the article are two sidebars: The first sidebar lists three questions for every review; the second sidebar details the perfect type of review.