360 degree feedback

Citation

(1999), "360 degree feedback", Journal of European Industrial Training, Vol. 23 No. 9. https://doi.org/10.1108/jeit.1999.00323iab.007

360 degree feedback

Keywords: Assessment, Management, Feedback

360-degree feedback is one of the hot topics of current management evaluation and assessment. The issue was discussed at a recent conference organized by the European Foundation for Management Development (EFMD) in Lausanne, which brought together a group of 60 leading instrument developers, researchers and experienced users. The following are some of the key success factors to 360-degree feedback that were identified at the conference.

A British study presented at the conference showed that 60 per cent of the surveyed organizations use some kind of multi-rater feedback tool, and many of them opt for a 360-degree approach. The study also revealed that 360-degree feedback can be a very powerful tool if used in the right context, with careful design, implementation and follow-up support. On average, however, companies spend 90 per cent of their time on the process of wording the questionnaire, whereas most value is in the feedback stage, follow-up development plans and coaching, which are often neglected.

This deficit is all the more alarming since one of the key success factors of 360-degree feedback that were identified at the conference is the link between the tool and the overall business context, i.e. individual development, training, performance management, succession planning, remuneration, etc.

In order to establish this link, top management commitment is absolutely necessary. Both researchers and practitioners agreed that, if the tool is viewed as an initiative of the human resources department, only the success rate is limited.

Another key success factor of 360-degree feedback lies in the communication of the tool. As Louise de Gouveia, of the European Bank for Reconstruction and Development, concluded, as much time as possible should be invested in communicating the entire process and expected outcome. It is essential that communication is targeted to both raters and ratees. The importance of individual assistance in the process was also emphasized by Mario Castagnetta, of Bulgari, a small global luxury goods company that used 360-degree feedback to develop a competency profile for senior management.

While many companies run their 360-degree process through the computer system via the intranet and e-mail, there is an inherent danger in that. According to Ann Redfearn, of Philips, this led to a number of problems with e-mail systems jumbling the data and technophobic people losing the files. Therefore, Philips will now install a scanable paper version.

Another issue that was discussed at the conference was legal aspects of multi-rater feedback tools. If employers use these tools for making decisions on job advancement, remuneration or termination, risks of liability based on claims of discrimination or unfair dismissal could arise.

360-degree feedback – an unguided missile or a powerful weapon? This question which was asked at the outset of the conference could be answered after the discussion: the benefits from 360-degree feedback can be substantial but, if an essential part of the process is flawed, the experience can be a disaster.

For further information on the conference, please contact the European Foundation for Management Development, 88 rue Gachard, B-1050 Brussels, Belgium. Tel: +32 2 648 03 85. Fax: +32 2 646 07 68. Internet: http://www.efmd.be