To date, I've only done one formal employee review. There wasn't a lot that went into it for me . . . Basically, I organized the thoughts that I have on a daily basis about this person and his strengths and weaknesses. I complimented him on the things he's doing well and told him what he needs to work on. Because he had shown vast improvement from when he had started, I gave him a raise.
It was a very positive experience.
As far as forms, strategies, I'm not there yet, just a basic review practically off the seat of my pants. I think there are things you can institute to make the process seem very professional but the truth is, you know what each of your people needs to do to become a better employee.