My model is not a radical change. the organization would continue to set goals that can be traced back to strategic plan and tied to the balance sheet. I would eliminate the formal performance review. In it's place at least 66% of at risk compensation would be ties to the 1 big thing the organization wanted to accomplish in the period.  the other 33% based on the indiividual goals, and would not require a review they would be a you either did it or did not do it type of goal.

Perfomance of individual contributers would not be managed with a formal review. Managers would be expected to be talking to employees on a regular basis and reinforcing and correcting on a continual real time basis. Feedback would be expected on a daily basis for all and from all directions, up, down and across.

Managing by walking around, get out and look for people doing things right or that they need help on and talk to them. Get rid of the laundry list of goals and focus on one thing, and one thing only, give people clarity by focusing thier efforts on the big goal