re: Sales Managers - Any tips for a better Annual Performance Review?

To make sure I understand, you want them to be open and honest with you?

Have an open door policy, reward/welcome constructive feedback and ideas, get to know them on a more personal level and show them you care about them and that they are more than just a cog in your wheel. You need to make them feel like you are a part of THEIR team, not the upper management team.

I don't think incorporating it during the annual performance review is the best way to go about it. It's more of a fluid 365 day per year thing.

As far as their reviews, you should make it crystal clear what your quantitative and qualitative expectations are. It's too late to do that for 2013 if you didn't do so, but you can get it going for 2014.

Also, make sure you are not taking the cookie cutter approach and managing each personality the same way. Have you had them take a DiSC assessment? It was one of the most helpful things for me in realizing that I sometimes need to tailor my messaging to them 4 different ways to maximize their performance, morale, etc. It's also helpful for you to take one and have them know where you fall on the profile as well as where your own manager falls.

FWIW, I manage a team of 12 sales reps for a Fortune 500 company, but have managed smaller teams in smaller organizations in the past, and this approach has worked in all of my roles.