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Assessment & Evaluation

Published July 2007

The Promise of 360-Degree Feedback

Chris Musselwhite

 

Done well, 360s can provide excellent data for development. Done badly, they can cause confusion and distrust. The result is either an organization with enhanced capacity for effective operation or one in which ineffective behavior is reinforced or increased. As a result, leadership and management competency assessment using 360s is a challenging process in any organization. But taking a considered approach and following a few simple guidelines can help any organization use this proven development tool effectively.

Much has been written about the promise of 360-degree feedback since it was developed in the early 1970s, and these days, most Fortune 500 companies extensively use this type of feedback. In fact, 360s are one of the most widely used talent management tools for middle- and senior-level managers.

But do they really deliver what organizations need to develop and retain talent? This question should be asked in light of the impending talent shortage predicted for the next 10 to 15 years.

Research shows it's cheaper to develop and retain talent than it is to recruit and hire. Companies seeking to keep existing talent via the use of more development are using 360s, along with other development tools, more frequently. Because research consistently ranks growth and development as top contributors to job satisfaction and motivation, using development tactics to retain top talent is a wise strategy.  

Recognizing these facts, it makes sense to include individual development in your talent management strategy. If used correctly and as one component in a comprehensive program, the 360 is a good place to start.

All About 360s

Formerly a term heard mostly in human resource circles, the 360 is so widely used today that you'd be hard-pressed to find a businessperson who has not participated in a 360 assessment process.

The 360-degree assessment (also referred to as multirater assessment) has been used most frequently for employee development and placement or promotion decision support. It is used to gather feedback about an individual's management and leadership skills via a series of survey items that reflect competencies important to the organization.

As the name implies, 360s are designed to provide a complete 360-degree picture of the individual's strengths and developmental needs from the perspective of those who work with him or her: boss, peers and direct reports. The true value of a 360 is that it can show individuals how their self-perception differs from the perceptions of others.

By revealing personal blind spots that might negatively affect an individual's managerial or leadership effectiveness, 360s can provide a very focused and efficient road map for personal development — when individuals can quickly change behaviors that negatively affect those who work closest to them, they can just as quickly change perceptions of their effectiveness.