About 360 degree feedback, benefits and pitfalls

What is 360 degree feedback?

For the purposes of performance management, the achievements of people at work can be divided broadly into two components:

Functional performance
eg. Processes improved, budget results, sales levels, projects completed, items processed, etc)

Behavioural performance
eg. Reliability, communications skills, judgment, teamwork, interpersonal skills, etc)

360 degree feedback can only be used for behavioural aspects of performance

Research and experience tell us that behavioural aspects of performance can be equally as important as functional aspects of performance (most people are familiar with colleagues who are good at their job but who have serious behaviour deficiencies - making them overall marginal performers). For this reason, most good performance management systems include both aspects.

Incorporating 360 degree feedback (or multi-source performance assessment) into the performance management process, can produce astounding results because:

• Asking for and receiving feedback can be very powerful when it comes from a "circle of influence" with direct knowledge of a person's work behaviours.
• Receiving feedback from many people offers a more honest, reliable, and valid evaluation than traditional appraisals given from one person's perspective only.

The 360 degree feedback system differs from the traditional manager to employee feedback loop by incorporating multiple evaluators of an employee's performance.

How does 360 degree feedback work?

A typical process for administering a 360 feedback process is:

1. Describe the behaviours a manager should be displaying.
2. Insert those descriptions into the 360 feedback diagnostic.
3. Distribute the diagnostic to the manager, a sample of their staff, a sample of their peers, and their manager.
4. Ask each person to rate the performance of the manager on each behaviour (on a 5 or 7 point scale).
5. Collate all the ratings and evaluate the performance of the manager on the results.

By combining the results for all managers in a business unit, a profile of management/ leadership behaviour capabilities is identified.

The benefits of 360 degree feedback

A more balanced view of individual performance.

Feedback from only one source can be dismissed as being only one person's opinion. If a number of people say the same thing then it is harder to ignore it. Equally a personal opinion from one person can be balanced out by the overall view of others using the 360 approach.

Often differences of opinion about the performance of a person are caused by different expectations on the part of those rating them. The 360 approach provides a basis for identifying and discussing these different expectations.

It is more likely to cause behaviour change.

Evidence from a number of different assessors is reliable evidence and is difficult to ignore. When faced with the evidence most people resolve to make changes to the way that they work. The level of detail enables them to do so reliably. Subsequent feedback can tell them how they are doing. The evidence will also identify strengths that can be built on as a means of improving performance even further.

It reveals unique information not captured by other methods.

On an individual level 360 degree feedback methods overcome blockages to feedback from a number of sources. Examples of such blockages include a reluctance of the team to give negative feedback to a team leader, also there is often a lack of positive feedback from the manager to team members. These barriers are all easily overcome through 360 degree feedback. If peers and customers are used then feedback is received from people that normally do not give it.

For top-level managers it is often their only source of reliable feedback.

Top-level managers often do not receive any feedback on their day-to-day behavioural skills: there simply isn't anyone to give it. The only way a top-level manager can get feedback is to encourage team members or peers to give it. A 360 degree feedback process is the ideal way to do this.

It increases understanding of how people are expected to perform.

A common reason that people do not perform in the most effective way is that either they don't know what to do to be more effective, or they fail to appreciate the effect that things that they do have on others. The 360 degree feedback is an ideal way to help them understand.

It helps managers understand team members' skills, particularly in flat or rapidly changing Organisation structures.

With a large number of direct reports a manager cannot spend time looking at the day-to-day activities of their team. In fast changing organisations the team leader may not have managed team members for very long. The 360 degree feedback process gathers information on individuals from all those that have seen how they perform. A new or very busy manager can use this information to get to know their team a lot faster.

A powerful lead in to self directed learning and development.

When faced with overwhelming evidence of a competence that needs to be developed there is only one question for most people, "how can I do something about it?" Often deep routed and long-standing problems are confronted in this way. The self-directed learning and development that then happens is based on real need rather than only an individual's self-perception.

It brings a competency framework to life.

However much time and money you spend developing a competency framework that precisely defines the way you want people to work, it can easily become a dusty manual on a shelf. A 360 feedback process using questionnaires directly linked to the framework gives the competencies real meaning. They are made directly relevant to people's day-to-day work.

Provides organisation-wide insights.

The data from 360 degree feedback on individuals can be gathered together to give a range of cross group or organisation insights. The competency strengths and development needs of all, or part of, the organisation can be assessed. This technique can also be used to check the relevance and suitability of the original competency framework.

The potential pitfalls of 360 degree feedback

Fear of receiving or giving feedback.

Some people do not feel safe giving feedback because negative feedback can effect working relationships. Some people do not like receiving feedback because it is too confronting.

To overcome these pitfalls the system needs to ensure that people feel safe giving and receiving feedback.

For those receiving feedback:

• They should choose whom to ask to complete questionnaire.
• The responses they receive should be confidential to them and not held centrally.
• They should be able to view the results and plan development activities in their own time at their own pace.
• There should be nobody looking over their shoulder at any time.

For those giving feedback:

• The feedback should be anonymous - there should be no way to link feedback to the identity of any individual person that completed the questionnaire.
• It should be voluntary whether to give feedback.

If there is no fear of giving feedback then named feedback is better because allows open discussion of performance. Of course, recipients need to know how to constructively query the feedback they have received.

Questionnaire too rigid or not relevant to job.

This problem arises where a standard competency model or psychometric test is used for the questionnaire. It is best to use a customised competency model as the basis for the questionnaire.

Not being offered any clear way to overcome the development gaps exposed.

It is no use identifying development needs if there is no support mechanism in place to deal with these. Each element of the diagnostic must be linked to expert development advice. This should contain behavioural tips for a person to try immediately, coaching advice and planned experiences to help them improve through practice. Organisations should also link in all of their standard training and development options.

A focus on pay or "appraisal".

A 360 degree feedback process should be used predominantly for self development purposes. Only in this way will an individual be most open and accepting of the feedback. If pay setting or appraisal is the objective then the stakes are raised and people gain by glossing over development needs.

Summary

360 degree feedback is a powerful tool for change for both individuals and organisations as a whole. The clearest result is that individuals, faced with overwhelming and indisputable evidence, genuinely rethink attitudes and habits that have become ingrained over the years. Changing the individual performance of a number of people in a coordinated way then leads to changing the performance of the organisation as a whole.