Saturday, June 28, 2008

What is 360-degree feedback?

360-degree feedback is simply consolidated feedback collected from multiple sources. For individual feedback those multiple sources might include peers, direct reports, managers, and supervisors. For an organization seeking feedback the sources might be employees, customers, and suppliers.

When used in conjunction with a web-based application, performance feedback which may have previously been difficult to gather is now easily within the reach of most organizations. Pulling in data from 360 degrees around a subject provides a far more balanced perspective for use in planning and decision making. Two common application examples include:

People Development: You can use multi-rater (360) feedback to measure individual and group proficiencies in the skills, competencies, behaviors, and practices needed to perform their respective jobs. Individuals can use the feedback to create, implement, and monitor their own development plans. When deployed across the organization it can also provide the aggregate data decision makers can use to quickly recognize performance gaps and more accurately target training and development investments.

Organization Development: Improving an organization’s performance relies on the degree to which leaders can access and act upon relevant information. What do employees think about the organization? How would they describe what it is like to work here today? How do we measure up when it comes to "walking the walk" around our vision and values? Do employees feel valued, their ideas and suggestions encouraged? Thoughtfully crafted and administered feedback projects allow leaders to take the pulse of the organization, identify improvement opportunities, and begin the process of charting a path forward.

360- feedback projects can be designed and administered in-house or though a fee-based external service bureau. For a robust in-house capability you can purchase fully featured software systems. For limited scope projects requiring less functionality and flexibility you can choose from a variety of low or no cost on-line providers.

Survey information is collected anonymously and entered into a computer. Scores are averaged, and the results are reported in a matrix of performance data. The feedback may be quantitative (numerical scores) and qualitative (narrative comments). Developmental plans can be created based on improvement opportunities identified by the feedback. Using aggregate data an organization can spot themes, trends, and gaps...locally or across the enterprise.

Most 360 systems have extensive safeguards for anonymity and confidentiality. These features assure participants that 360-degree feedback is a safe way to share information that is hard to measure and awkward to communicate.

While 360 is an extremely effective diagnostic tool, don’t expect it to solve all your organization's performance improvement problems. In fact, don't expect it to do anything for you unless you use it as part of an overall development strategy. Keep in mind that 360 degree feedback is not intended to be used as a performance appraisal tool. Rather, it is best when used for developmental purposes.

Why is feedback important?

People need feedback. Most people don't see themselves as others see them. For this reason, they often don't understand the impact their actions have on others. They have "blind spots." For example, people don't always know when their work is appreciated, and they aren’t always sure when they’re causing problems. Even well intentioned and hard-working people rely on ingrained patterns for success. Because they aren’t always conscious of what comes naturally, they may be the only ones who don't know that they’re adversely affecting the performance of their group.

Performance improvement.
Feedback is essential to learning. If people don't fully appreciate their strengths, how can they use them to their advantage? If they aren't sure how their actions create problems, how will they know what to change, and will they have the motivation to improve?

Motivation. People who take a professional attitude toward their work want feedback. They want to know what’s working and what isn't. They want to know if managers are pleased with their performance. They want to contribute to solutions, not be the cause of problems. They don't like having blind spots, and they want to know how to improve. They’re willing to invest in themselves to achieve better results, because they know this will increase their value in the career marketplace.

The challenge. As valuable and as desirable as it is, constructive feedback is not a regular occurrence in most workplaces. The most common reasons:
• They usually find it uncomfortable to confront each other about performance issues.
• Most people aren’t sure how to give feedback effectively.
• Very few people like accepting negative feedback.

Where did the idea of 360-degree feedback come from?

The idea of 360-degree feedback for individuals is a relatively new concept. Forty years ago, some assessments experimented with self-ratings compared with ratings from others. These early tools borrowed from a number of traditions.

Peer evaluation.
The service academies were among the first to use peer ratings. Along with ratings from tactical officers, cadets received ratings from other cadets in their unit. These ratings were summarized by computer and used for counseling. Decades later, organizations decided that similar practices might work for them.

Personality testing. While 360 feedback describes observable behavior, personality testing focuses on patterns of mind and thought, which are inferred indirectly. Personality testing in organizations began in the fifties and became a popular practice in the seventies. From personality testing, researchers learned the value of giving feedback to individuals in the workforce.

Organizational surveys. A form of multi-source feedback, climate surveys and employee opinion surveys have been in use since the sixties. These tools create feedback about organizations, not individuals. From organizational surveys, researchers discovered how to use computers to collect, analyze and report survey data.

Performance appraisal. Since the fifties, most organizations large enough to have a personnel manager have used some form of performance review. Most appraisals are highly subjective in their formats and are linked to compensation or personnel action. From this history, researchers have validated the usefulness of periodic performance feedback.

The first attempts at 360-degree feedback were designed to show leaders how their self-perceptions differed from the perceptions of direct reports. Building on the above traditions, researchers developed more comprehensive and credible surveys. These were introduced in the 1970s. The first 360 instruments were focused on executive management and leadership. Initially, managers distrusted the concept of direct reports rating them. It seemed strange and threatening. Nevertheless, managers experienced the power of the feedback, and they began seeking input from multiple sources.

Today, tools are far more flexible, affordable and easy to use than ever. Once used almost exclusively by larger organizations to develop executives, today they are used by all types of organizations and throughout the workforce to assess a myriad of interpersonal skill areas.

What are the best uses of 360-degree feedback?

The best use of 360 is to identify priority areas for improvement of individual performance. Some newer software platforms are sufficiently flexible to accommodate a variety of mainstream uses:

Measuring hard-to-quantify aspects of performance. Many aspects of work, especially business, technical and administrative activities, are relatively easy to quantify and measure, so it doesn't make sense to go to the trouble of surveying a lot of opinions about them. Other key areas of performance are hard to quantify. Typically, these involve the interpersonal aspects of work, such as leadership, communication, sales, service, negotiation and instruction. 360 supports:
• Performance improvement validation
• Executive coaching
• Leadership development
• Employee development

Needs assessment.
Most 360 systems will aggregate individual data at group and organization levels, providing the best possible performance-based needs assessment data. Organizations can easily identify areas of skill strength and deficiency.

Organizational surveys. Survey software can be also be used to gather feedback for any kind of group, department or other organizational entity:
• Climate/engagement surveys
• Customer satisfaction surveys
• Team effectiveness surveys

How does the 360-degree feedback process work?

Feedback processes vary from setting to setting. A number of structured activities may take place before, during and after assessment.

Before Assessment. It's never a good idea to simply begin assessing people. Some of these preparatory steps may be necessary.
• Educate people about 360
• Resolve issues related to 360
• Integrate 360 into the performance management system
• Develop customized competency lists
• Reinforce feedback skills
• Reinforce performance coaching skills
• Conduct orientation briefings
• Train administrators to use the software
• Conduct pilot assessment projects
• Train internal facilitators to lead interpretation and planning sessions

During Assessment. Organizations that want to take care of administration and scoring internally can purchase in-house administration software to manage all aspects of the feedback process. If they want to outsource these functions, they can contract for these services from external organizations that act as a service bureau. Generally, assessment administration involves these tasks:
• Set up a customized assessment project on the software
• Prepare and distribute respondent questionnaires
• Collect and transfer data to the system
• Customize, print and bind individual reports
• Customize and print needs assessment reports

After Assessment.
The payoff of 360 comes in the follow-up.
• Facilitate group feedback sessions
• Facilitate supplemental feedback sessions
• Facilitate planning sessions
• Coach individual development planning
• Incorporate a structured program of follow-up reinforcement: continued learning, ongoing feedback, coaching and accountability

How often should 360-degree feedback be administered?

Because today’s web-enabled systems make it easy and economical to collect and report structured feedback and make it available to all employees as often as they need it. However, most of the benefit of 360 would be missed if 360 were limited to only one administration. It’s not the kind of thing about which managers should say, "We did it, we got what we could out of it, so let’s move on."

To be sure, the first administration provides a wealth of revelations about strengths and new areas for improvement—typically more than a person can address in one cycle of development. The feedback is believable, since it comes from many sources; and the narrative comments are often perceived as the most valuable input, since they are more descriptive than numbers can be. Ideally, feedback recipients will focus on one or two high-priority areas for improvement. If their development plans are realistic, and if they implement them, major gains in personal performance can be achieved.

People need time to experiment with new patterns and learn from successes and frustrations. The ideal period between assessments is between nine months and a year. It's enough time to make changes and create new perceptions; yet, it's not so distant in the future that the hard work of behavioral change can be deferred.
The knowledge that a follow-up repeat assessment will be conducted can increase a person's motivation to undertake the difficult challenge of changing ingrained patterns. The people who want to change will welcome a repeat assessment. They’d like to transform weak areas into strengths, and they realize a follow-up assessment will document their progress.

What are the major benefits of 360-degree feedback?

People need feedback, and 360-degree feedback is the most effective way to give them information about hard-to-measure aspects of their performance. With a flexible feedback platform you can address a wide variety of survey and assessment needs.
Systematic performance evaluation. Day-to-day, person-to-person feedback is exceedingly valuable. But feedback based on one person's observations is unpredictable, and it’s usually focused on only one aspect of performance. 360 lets you ask for and get feedback from many sources about a comprehensive array of closely related workplace behaviors. This input is ideal for individual development planning.

Coworker feedback.
Giving effective feedback requires a certain amount of interpersonal skill. Most people are uncomfortable in the feedback role—whether giving positive or constructive feedback—and they’re happy to leave this task to managers. Also, most people don't like being negative, and they don't want to risk offending their coworkers. 360-degree feedback gives people a safe vehicle for giving their opinions about another person's work patterns.

Feedback from many sources.
Feedback from one source is better than no feedback at all. But even when it’s from the boss, it’s still one person's opinion. Consistent feedback from many sources is more convincing. Faced with the hard work of changing behavior, people want feedback to be thorough and credible.

Objective, quantified data about "soft" areas of performance. Many important elements of performance are hard to quantify. The most obvious examples are the interpersonal aspects of work, such as leadership, team communication, sales, service, negotiation and instruction. Because 360 combines scaled measurements from many sources focused on detailed, researched aspects of behavior, the data are highly objective.

Simplified feedback administration. While administering 360 feedback used to be extremely complex and cumbersome, advanced on-site 360 software makes survey administration as easy as using a word processing program.

Data for individual development planning. The wealth of objective feedback about areas of competence makes it possible to accept the data and focus on priority areas for self-improvement.

Data for needs assessment and HRD planning. The data produced by collecting individual feedback can be aggregated as averages for group and organizational analysis of strengths and weaknesses.