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For developers team leads/management, What are the key discussion points when performing a developer's performance review? How will you measure how well a developer has performed? Which areas should one focus on? Which areas not to focus on?

+2  A: 

I personally find end of year reviews pointless. The best way is to be in continuous communication throughout the year. Make sure anything good or bad is noted as soon as possible. If you are agile, the perfect time to go over this is at the end of the sprints. If you do this, it will be clear what to focus on. It's just silly trying to review everything that has happened over the past year. However, reviewing everything that has happened over the past 2 weeks is much more manageable.

NotDan
Speaking as a developer, I wholeheartedly agree. Having done the development lead role, I know how hard it is to rip one's focus away from the giant billboard that is the project schedule. And I do recognize the dichotomy in neglecting that constant feedback. I think it has to be because directors and veeps don't give a rip for the touchy-feely side of development, the improvement in developer quality and skillset. They care about metrics like bug counts, and about counting down to the next release.
JMD