360 Degree Feedback

360 degree feedback systems can impact greatly on performance in organisations by increasing self-awareness and ownership and driving motivation for self-development.

What is 360 Degree Feedback?

Regular performance appraisals normally provide feedback from an employee's line manager only, while 360 appraisals include feedback from a number of observers such as peers, direct reports, customers and managers.  The employee completes a self-rating and gets feedback on how their own ratings compare to those of the observers.

Benefits

When an employee receives consistent feedback from a number of sources about their strengths and weaknesses, it appears more valid than if the feedback comes only from their manager.  It's easier to discount the opinion of one person, than if a majority of observers identify the same issue.  Acknowledging a problem is a critical step in improving performance and once an employee takes ownership of the need to make a change, development activities can become more effective.

For senior managers, 360 feedback from peers and direct reports is often the only way they can get feedback on their performance.

Challenges

360 feedback processes do not work effectively in environments with a lack of openness and trust and can be harmful if there is not a genuine commitment to providing constructive feedback.

It is important that any agreements made with staff about the confidentiality and anonymity of the process are respected so that people feel comfortable providing open and honest feedback.

Success Factors

Careful consideration should be given to the design of a 360 appraisal system to ensure the best results from the process.  The system should provide feedback on competencies and behaviours that are relevant for each position and linked to the vision and strategy of the organisation.  Great results can be achieved if a 360 feedback process is linked to an existing effective appraisal system.

You need to consider the degree of anonymity or transparency that is appropriate for your business.  In close-knit teams, with a high maturity level in terms of giving and receiving feedback, transparency can enhance the process.  This gives the individual the opportunity to clarify questions about the feedback directly with the observers.  In an organisation where people are not as comfortable with feedback, an anonymous process may work better.  Feedback can be delivered to individuals either by their manager (with appropriate training) or by an external facilitator.

To ensure staff buy-in, it's a good idea to consult them on the design of the process.  Staff should also have a say in the selection of observers to comment on their performance.  The observers obviously need to work closely enough with the individual to be knowledgeable about their performance.

The process should not be too time-consuming or onerous for observers who may be evaluating a number of people.  Online systems will enable observers to complete the process more quickly.

Training of all participants in the process is essential to get the best results.  The following training should be delivered:

Observers: 
Training in how to provide effective feedback, both positive and constructive.      
Staff:               
Training in how to accept feedback.
Managers:       
Training in delivering the results of the 360 appraisals to their staff and on how to assist with the implementation of development plans.