Corporate Training Magazine

Is Your Organization Ready for 360 Degree Feedback?
Vol 1 Issue 2- Nov 2005

By Judith Ulyatt

Human resource professionals are quick to point out that 360 degree feedback is a tried-and-true yet innovative approach to the assessment of performance. This contradiction indicates both the novelty and soundness of a 360 degree feedback exercise.

There is nothing magical about 360 degree feedback. It is simply a method for gathering perceptions on individual performance from all those who are close enough to observe it.

The principle is simple: to see ourselves as others see us. The assumption behind 360 feedback is also straightforward: feedback from individuals with different perspectives provides a more complete picture of performance. The manager does not see the individual perform in all situations, and colleagues see the individual at different times for different reasons. So if the manager, the individual, peers, direct reports, customers and others are invited to participate in a confidential survey to rate the individual against an agreed set of performance standards, then a well-rounded view of performance can be obtained. Based on all source ratings, a 360 degree feedback report is prepared for the individual that underscores their strengths and identifies performance needs in a very objective and thorough fashion.

The basis of 360 is a set of performance standards that depict performance in observable terms. You cannot see someone 'think'; you can only see someone 'do'. Different groups are asked to indicate where along a specified scale they have observed behaviour. The results of these group ratings are mathematically consolidated against each standard to preserve anonymity. The presentation of the similarities and differences of rater group perceptions of performance against these standards form the basis of the report. That's it; a complete view of individual performance against standards is created for each participating individual and provided as feedback.

So, why do so many 360 degree feedback exercises flounder despite good intentions? The answer is simple. The organization was not ready for a 360 intervention--and it is an intervention.

What Does Readiness Mean?
If you think that undertaking 360 could be appropriate for your organization, there are a number of considerations that you should first explore. Does your current culture support an exercise such as this with the values necessary for success? Is the prevalent management philosophy one that will encourage enthusiastic support for such a venture? Will employees see this as a positive initiative? Is the timing right? Companies have faltered where a 360 was initiated in times of massive organizational change. People have to feel safe in order to wholeheartedly participate.

There is, and has to be, something in it for everyone. Otherwise, why would anyone want to spend the time, money and resources to implement a 360?

For the individual: 360 is seen as more 'believable' by people who receive such feedback. Based on Assessment Center approaches, people tend to see this feedback as more accurate and reliable than the traditional approach of a single rater. They learn what they have to improve in order to be successful.
For senior management: 360 feedback can ensure development dollars are directed to areas of importance for overall organizational performance.

Superficially, this seems like readiness. People will value the feedback, and management will see benefits. However, 360 feedback is a specific strategic initiative, not a launch of a methodology. It requires real engagement of people in the organization to craft an approach unique to the circumstances.

At minimum, you have to have three conditions satisfied:

All stakeholders and participants share a common vision of the expected benefits of the 360
A set of performance standards exist that are clear, understood and endorsed
Those involved understand how to participate and feel secure in participating

A Common Vision of Benefits
The most obvious starting point is to answer why a 360 should be implemented. What is the need? What has to be achieved? Here are some reasons:

Targeted development planning in key roles or job levels is critical to organizational success
As such, the 360 is a tool for individual development. People take the assessment seriously and will undertake to address their performance issues. If the report is available to the manager as well, and established as part of the exercise up front, then a meaningful dialogue on how performance needs will be both undertaken and supported will ensue.

Training needs assessment based on competencies for business success will provide sound business-oriented training and development
Beyond producing individual 360 feedback reports, an analysis can be conducted on the data of all participants to identify collective performance gaps. Such aggregate analyses can crystallize training priorities if these gaps are general developmental needs.

Training value must be measured in on-the-job application of learning
The objective in this case is to measure the effectiveness of courses, not the individual. 360 is the means of objectively measuring behaviour change based on course completion. Participating attendees may obtain an Individual feedback report, but the corporate intention is to gauge course success in terms of its impact on applied learning.

Compensation decisions on movement along a salary line must be based on sound behavioural performance, while results achievements drive variable performance pay.
Effective performance is seen as a combination of what the individual achieved, and how these results were achieved. The "how" is behavioural effectiveness measured against performance standards.

Diagnosis of non-performance-related problems is important for overall business success
Results from a 360 exercise are "mined" to uncover performance shortfalls that are the result of a factor in the organizational environment that is undermining performance. Such problems are due to elements in the organization that impact on performance‹individually and collectively.

Identification of high-potential individuals is key to sound succession planning
Specific profiles of performance based on preferred behavioural norms can be crafted for key roles or positions. Matching individuals to specific profiles can generate a "high potential list" of those who may be ready to assume certain roles.

If there is no common ground, getting senior management commitment is a continuous and often futile round of "tell and sell". Only when key decision-makers see 360 as the way of achieving their aims will they be committed to ensuring success. Do you know what they want? Is 360 the answer? Do they agree?

Performance Standards
If 360 is the answer, the kind of performance standard required to drive results depends on the purpose of the initiative. Performance standards come in many forms:

Competency standards describe how key job dimensions are performed. Written as statements defining what 'amazing' performance would look like, these competencies may be core or central to all jobs, specific to certain jobs, or unique to particular roles. These standards capture what people should be good at doing while handling job demands;
Accountabilities are defined in behavioural terms to cover key role requirements. Written as statements of performance excellence, such accountability standards differentiate what must be accomplished by specific organizational levels or roles. These standards capture the essence of the role/job in preferred behavioural terms.
Specific skills based on behaviour-based course objectives are used to evaluate the success of transfer of learning to the work environment. In this instance, the behavioural objectives that drove the design of the training are used as the basis of determining whether this behaviour is being demonstrated in the workplace.

Performance standards should never be a surprise. However, development of these performance standards specific to the need is an exercise in and of itself. Some companies do this all on their own. Some companies take their initial draft set of standards to an outside consultant to ensure usability. Other companies buy off-the-shelf competency models. While this may shorten the time to implementation, it forges dependency on the vendor and misses the opportunity for standards unique to business objectives.

Overall, the nature and wording of performance standards is pivotal as it is the future basis of all decisions and actions. Do these exist already in your organization? Is there consensus among all concerned that they are valid, accurate, measurable and suitable for the purposes?

Managing Participation
Not to be overlooked in this initiative are the people involved. You have only done half the work if you have senior commitment to a 360, clarity on purpose, and agreement on standards.

The process of implementation of a 360 makes or breaks the exercise. People do not want to feel they could get hurt in the process. They need to feel safe and secure in their understanding for what the data will be used for, and equally important, what it will not be used for. they need to feel secure that it does not jeopardize them in some way. If this sense of security is not there, best efforts can be sabotaged. People also need to see the benefit to themselves.

The following are some of the base requirements for implementation success:

A program of staff involvement to finalize standards of performance
A clear communication strategy for the 360 and the use of data
Well-defined steps and programs for follow-up and follow-through
Briefings on how to participate in the 360
Training on how to interpret the results in the 360 feedback report
A sound plan for managing and coordinating the efforts of all concerned

Remember, you are implementing a process, not installing a system. Being sensitive to the potential impact of this implementation in your organization is a first requirement. Knowing when and where to begin is critical. Recognizing whether outside expertise is needed in change management or even to lend objectivity and emphasize confidentiality is also important. Being sure the 360 is a collaborative effort with management is paramount.

If You Are Ready
Once the three conditions of a common vision of benefits, well-understood and accepted performance standards, and an organization primed and prepared have been met, you are ready to proceed. There will always be bumps along the path to 360 feedback, and there are many milestones on the journey particular to your circumstances.

Success is recognizable: you will have "arrived" when 360 is considered a normal practice and the need it was intended to meet is being well served.