Dear Matt: I always struggle with performance reviews. I don't know how to best evaluate myself, and I don't feel comfortable talking or bragging about myself. Why do companies rely on these reviews to determine a raise or bonus?

Matt says: It's simple — businesses cannot dole out raises, bonuses and promotions arbitrarily. That's why most companies operate on a performance-based structure.

"Merit is the key to unlocking doors to financial gain and career progression, and performance reviews are the vehicles by which we are judged," says Lisa Panarello, a career coach, professional trainer and founder and president of Careers Advance (careersadvance.org), a company that helps job seekers at all stages achieve their career goals.

Here are three tips to help drive success in your next review, Panarello said:

1. Track your progress. Start now. Create a two-column document to record your daily responsibilities (regular tasks, ad hoc projects, special assignments) and your individual and team-based achievements (clients acquired, programs developed, processes improved, awards/recognition received). Gather your achievements to illustrate the impact of your actions (direct contributions) and review internal reports to obtain quantitative data on company/departmental results (indirect contributions). Examples include: Increases in sales, site traffic and cost savings. Lastly, collect work samples. Set bi-weekly or monthly calendar reminders to track progress.

2. Prepare to substantiate. Format your notes into a ready-to-present document. Format with bullet points and add goals for the following year (new responsibilities and education you wish to pursue) and check for grammar/clarity. If you're concerned that you'll sound like you're bragging, don't be. You're simply stating facts that show you met or exceeded expectations. "Arm yourself with supportive evidence and you'll be better situated to demonstrate your value to your firm," says Panarello.

3. Invest in your plan. Don't go into your review cold. Identify key talking points and conduct a mock-review with a friend or professional coach. Talk in plain terms and use positive body language. "Practice will help you refine word choices, reduce anxiety and get comfortable talking about your greatness," Panarello said.

Gain a clear understanding of what your company values in the evaluation process and create goals that can meet those demands. This is no time to be timid or unsure. Think of it as an ongoing project. Instead of dreading the process, turn performance reviews into career-building conversations.

"We shouldn't demand a raise, bonus or promotion," says Panarello. "We should prove that we've earned it."

Contact Matt at jobslink@startribune.com.