Introduction
Feedback is critical to performance. In this month’s Article of the Month, we take a look at 360 degree feedback (also known as multi voter rating), a popular human resource tool that can be very effective in improving individual and team performance. After a brief review of the 360 degree feedback process, we will investigate the potential benefits of using this powerful tool, explore some pitfalls associated with its use, offer solutions about how to avoid these pitfalls and explain what to do with the feedback results.
Situation Overview
Every year fortune 500 companies invest hundreds of millions of dollars in 360 degree feedback programs believing they yield tremendously valuable information regarding how well their people are performing and where they might improve. This is the inherent value of 360 degree feedback: its ability to objectively determine perceived levels of performance across a number of specific competencies.
Traditionally, individuals receive feedback from their manager or supervisor either as a part of a formal performance appraisal process or through informal discussions within the workplace. Although social rules do not completely prevent discussions regarding performance from taking place, they can inhibit honest discussions about a person's performance, especially discussions about their weaknesses. In addition, despite encouragement otherwise, the focus of many performance appraisals often has more to do with determining future remuneration structures than with the development of a person’s skill set.
360 degree developmental feedback differs from other performance analysis activities in that its sole objective focuses on the development of people. In short, it is a highly effective way for people to discover how well, or how poorly, they are performing, and then use this information to build on strengths and improve performance where appropriate.
How Does it Work
Step 1: Define job competencies - The first step in the 360 degree feedback process is the identification of the core skills, competencies, behaviours and attitudes that govern the one's ability to perform a specific role or job. While many of these competencies are common to a large number of roles, the emphasis on specialisation within today’s work environment means that highly specialised roles have been created, each having its own particular mix of criteria.
Step 2: Create Survey - A comprehensive survey is then designed to probe these traits in detail. Typically surveys are qualitative in nature and ask survey respondents to rate particular statements on a scale of one to five or “Strongly Agree” to “Strongly Disagree”. Occasionally the surveys will include open-ended questions such as “What improvement could this person make that would result in the greatest improvement?” and “What are the greatest strengths this person brings to their role?”
Step 3: Choose Person, Identify Respondents and Distribute Survey – The statements and questions within the survey are then applied to a particular person. The survey may be undertaken by anyone who has significant contact with the given individual: their boss, colleagues, direct reports and supervisors. External stakeholders such as suppliers and customers can also be included as survey respondents if information from them is deemed relevant. The person themselves also undertakes the survey and rates themselves. Typically this is an anonymous process.
Step 4: Collect Survey and Analyse Results - The results of the survey are then collected, summarised and compared. Typically averages are created for the scores given by colleagues and other multiple rater categories (e.g., customers). These results are compared against with the scores from the person themselves and from their manager or supervisor. In this way a person can clearly see the differences in how they see themselves and how other people they interact with view them.
Step 5: Communicate Results and Design Development Plans - The summarised survey data are compiled into a feedback report and communicated to the person being rated. Often it can be beneficial to use an outside consultant to facilitate discussions about the feedback as it applies to the person, as external consultants are more likely to be viewed as objective. If an outside consultant is used for all stages of the 360 degree feedback process, the results can also be ensured to be used solely for development purposes and not shared with anyone expect the person being rated. The latter, when combined with dedicated coaching, assists feedback recipients with skill improvement.
The Benefits
The main benefit of 360 degree feedback is that the incorporation of feedback from multiple sources provides a richer understanding of a person’s strengths and areas for development. In addition, the 360 degree feedback process prevents the boss from being the sole provider of feedback. In fact, a person’s boss may not even be a good source of performance feedback, especially if they have infrequent contact with their subordinate. A person's colleagues on the other hand are often a more fruitful source of information regarding to the person’s competencies; 360 degree feedback is a tool that can be used to uncover this valuable information.
Once a person has been rated across a number of key dimensions, areas that represent opportunities for improvement can be identified revealed. Personal development plans to strengthen performance can then be created and actioned. If a number of people share common areas for development than workshops can be designed to address these common areas (e.g., building team competency).
360 degree feedback can also access previously untapped sources of feedback. For example if a role’s effectiveness depends upon how well a person work with suppliers then this group can be incorporated into the feedback process.
Pitfalls and Barriers and How to Overcome Them
360 degree feedback is an effective tool but because it is also a process that can easily go wrong if it is not carefully managed and administered.
Pitfall 1 - Using 360 degree feedback for more than developmental purposes
Problem: Because the 360 degree feedback process can be expensive it is tempting for organisatons to use the information in multiple needs (e.g., developmental and appraisal needs) in order to get more “bang for their buck”. However, this compromises the ability of the tool to gather quality information as the respondents are likely to alter their opinions if the results could negatively impact a person’s career.
Solution: Keep the 360-degree program as a developmental tool, and formulate clear rules for information sharing and usage.
Pitfall 2 - More information does not mean better feedback
Problem: Inclusion of multiple participants in 360-degree feedback allows for a large amount of data to be collected, however, more information does not necessarily mean better feedback.
Solution: In order for the feedback recipient to fully benefit from multiple data sources, the information gathered must focus on the specific behaviours required by particular roles within an organisational context.
Pitfall 3 - Easy does not equate to cost effective
Problem: 360 degree feedback surveys based on generic behaviours are easy to design and distribute. However, the resulting data may not provide much insight into performance in a particular workplace or job role; the results may even be misleading.
Solution: Customising 360 degree feedback surveys to suit the specific skills, behaviours, values, attitudes and other attributes of a particular role will be far more valuable than generic surveys.
Pitfall 4 - Beware of Authority
Problem: Some amount of managerial involvement in the 360-degree feedback process is necessary, however, over-involvement is likely to taint the process and reduce its potential impact.
Solution: Consultants can be hired as administrators. However, because consultancy fees are typically paid by management, consultants may not be trusted by employees. To overcome this obstacle, retain consultants on a long-term basis only if they are able to build trusting relationships.
Conclusion
360 degree feedback is a powerful tool for obtaining feedback that can be successfully used to drive high performance. Subsequent to conducting a 360 degree feedback assessment, customised learning plans to overcome areas of difficulty can be created. Developmental components of learning plans may include: training programs, coaching, working on projects, involvement in proposal or bidding processes, secondments, mentoring and post-graduate studies.
Using either paper based or online 360 assessments, Oisin can help you navigate the midfield of 360 degree feedback administration (e.g., identification of job competencies, survey design, survey distribution, response analysis, and communication of feedback results). In addition, we can help create learning initiates tailored to the specific developmental groups, teams and individuals within your organisation. We can also provide coaching support to make ensure the learning plans are followed through and modified as needed.
