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Key Design Decisions for 360 Feedback Success

Many managers and HR practitioners are familiar with 360 feedback as a leadership development practice. However, no two 360 feedback experiences look alike.

That is actually a good thing. Most successful 360 feedback drives behavior change both for individual leaders and their employers because the process is tailored to the organization’s unique culture as well as the intended purpose of the exercise.

On the other hand, this need for customization means practitioners face an overwhelming number of decisions when designing a new 360 feedback assessment. For example:

  • Who should participate?
  • How many survey questions should we include?
  • Who should receive the report?
  • What kind of follow-up support should we offer?
  • Who should choose the raters?
  • What role should HR play in the process?

Fortunately, some 360 feedback implementation practices have become ubiquitous. That means some guesswork, research and debate aren’t necessary. For example, below are five must-haves for strong engagement and outcomes.

Five Design Factors for 360 Feedback:

1) Which groups should participate in ratings?

Anyone who has observed a leader’s on-the-job behavior can provide useful rating input. This could include the leader who is being assessed, as well as a combination of direct supervisors, secondary managers, peers, direct reports, customers, board of directors representatives, donors and even skip reports.

In some situations, it is helpful to include other groups to meet specific requirements. For example, if a leader is actively involved with strategic partners or other third-party groups, their voices could add useful context. 

While there is flexibility to customize the participant mix, 360 feedback assessments typically include these four core rater groups as a baseline:  self, peers, direct reports, and direct managers. In fact, according to soon-to-be-released research from our firm, 88% of organizations include these four core groups.

2) Who will select and approve raters?

Among 360 feedback experts, there is some debate about the best way to choose raters. Should assessment recipients choose their participants? Those who favor this approach say it ensures a sense of ownership and buy-in. Others say a third party (a manager or HR representative) should choose raters. This ensures that feedback is well-balanced and avoids a “friends and family” bias.

Most 360 feedback process owners agree leaders should choose their own raters to build trust and establish assessment process buy-in. On the other hand, 70% of organizations tell us they review and approve final rater lists.

We agree that manager involvement is a wise practice, and a leader’s direct manager should approve the final list. Over the last 20 years, we’ve found that this is the most common approach. And according to our new benchmarking analysis, 48% of companies continue to use this method.

3) How will we score surveys and generate reports?

As with many HR processes, technology has also transformed 360 feedback implementation practices. Now, most HR practitioners rely heavily on online tools so they can collect, organize, analyze and share useful feedback faster and easier.

In 2009, spreadsheets and even paper surveys were still popular ways to collect and report 360 feedback data. Today, those methods are all but obsolete. In fact, 91% of organizations now use a web-based reporting tool to manage surveys and generate reports.

Many practitioners are also choosing to outsource this task to specialized service providers. In fact, our recent research shows that 80% of employers rely on an external vendor or consultant to handle this aspect of the process. 

4) How can we assure rater anonymity? 

To encourage honest responses, employers must ensure that feedback sources remain anonymous. Therefore, it’s not surprising that 81% of employers tell us rater anonymity is essential to the success of their 360 feedback endeavors.

A common way to ensure anonymity is by requiring a minimum number of survey responses for any group specified in the report. For example, peer scores are displayed separately only if at least 3 peers respond. If fewer peers respond, then that data is included only in overall average ratings.

Most often, organizations require a minimum of three raters in a category. In fact, 83% of companies use this three-rater threshold rule. Very few skip this requirement altogether (3% require no minimum responses). And on the other end of the spectrum, very few require more than three responses.

5) How will we help leaders translate the report into action?

For best results, talent management experts agree that personal follow-up is essential. To optimize ROI, employers should avoid the “desk drop” follow-up, where leaders receive a 360 feedback report, but no direct support to discuss results, implications, or next steps.

Follow-up can include any number of supportive actions, such as:  Adding development suggestions to the report, offering action planning guidance, providing individualized 1-on-1 coaching, assigning in-person or online workshops, referring leaders to specialized resource libraries, and more.

The most common step is also what talent management professionals feel is most critical for 360 assessment success:  Provide a one-on-one meeting with a trained 360 feedback coach who can facilitate action planning based on the results.

Historically, these sessions were conducted in person. However, in recent years, video meetings have become the dominant format. Also, reliance upon external coaches (rather than in-house staff) has become more popular.

Fortunately, 88% of organizations say they provide debrief sessions and one-on-one coaching, so feedback recipients can interpret insights and chart a relevant path forward.

Final Thoughts

Good leaders thrive on feedback. But for 360 feedback assessments to be effective, it’s important for leaders to understand the results and commit to improvement.

This means employers must take care to design and implement a valid, well-informed process from end to end. By addressing key design elements at the outset and by investing in ongoing leadership guidance, organizations can dramatically increase the likelihood of success.

 


EDITOR’S NOTE:
Want to learn more about the decisions talent managers make when designing and implementing 360 feedback assessments? Replay this recorded webinar, where the 3D Group unveils findings from its latest benchmarking study,
Current Practices in 360 Feedback, 7th Edition. This analysis includes 20 years of data from more than 600 companies.

#WorkTrends: How to Help People Reach Their Full Potential at Work

We all demand love in some form in our personal lives, but we skimp on asking for it at work. Treating people as a commodity instead of focusing on relationships is a surefire path to burnout and low long-term productivity, says Jason Lauritsen, an author, entrepreneur, corporate HR leader and consultant.

In this episode of #WorkTrends, Lauritsen shares how performance management could be the key to unlocking major wins for employers and their employees, but only if everyone is treated right.

We also speak with Dr. Pamela Howze of the National Fund for Workforce Solutions to clear up misconceptions about apprenticeships, mentorship and how employers in a range of industries are embracing staff who don’t have a college degree.

Listen to the full conversation or read the recap below. Subscribe so you never miss an episode.

Work Is a Relationship, Not a Contract

Showing up every day, creating connections at the office and in the industry, and countless interpersonal interactions are part of the daily experiences of employees. These elements are part of what will drive an employee to higher performance and bigger contributions.

“I don’t believe that it’s a matter of opinion; I think it’s a matter of fact that work is a relationship for the employee,” Lauritsen says. “It’s things like feeling valued, and trust, and knowing someone at work cares about me, and feeling appreciated, and all those things. Those are relational constructs.”

Unfortunately, many workplaces are oriented to treat a job as a contract with the employee. This can be seen in job descriptions, policy manuals, performance appraisals and more.

“It’s all about making sure your organization is getting their money’s worth out of what the employee owes them,” Lauritsen says. Employees are seeking a healthy relationship, which motivates them to better performance. But as an employee, he says, “all I hear is compliance-driven messaging and have compliance-driven interactions. It’s like, no wonder engagement sucks. No wonder it feels gross.”

Relationships Are Work Too

Creating a positive relationship in the workplace requires a specific focus on love and valuing people, he says, and companies should invest in creating this skill set in their leadership.

“As a general rule we aren’t great at relationships,” Lauritsen says. “Look at divorce rates. Go look at how people are interacting with each other in social media. Look at the national discourse and the decline of trust and all this. We’re not doing a good job of helping people learn how to be in a relationship with one another. You come into the workplace and the stakes are higher. There’s money involved now. It just amplifies how much we suck at relationships.”

His biggest piece of advice to determine how to adjust to this type of thinking is to look at interactions through the lens of a personal relationship. Ask yourself how an interaction, training or another approach would go over if you used it on someone you cared about in your personal life.

“If it would hurt the relationship then you probably should stop doing that to employees too. Figure out how to do it in a way that builds a relationship,” Lauritsen says.

Everything Is About Performance

Improving the relationship with employees will require companies and HR professionals to reframe their approach to engagement and performance, Lauritsen says.

“Employee engagement is the fuel to unlock better performance,” he says. That connection is extremely important, and “framing employee experience and employee-engagement in context of performance is really critical. Let’s be honest, executives don’t really care about engagement. They care about performance.”

To keep the relationship beneficial, both employee and employer must understand their roles and the overarching need for that relationship. Performance is the organizational imperative driving the relationship. “Without the performance imperative, you don’t need to exist,” he says. “We have to produce a product or a service that is of value to someone else. … That’s the lifeblood. That’s the oxygen, the blood, the whatever that keeps the organization alive. Everything is about performance.”

And a Little Bit of Controversy

Lauritsen stirs the pot toward the end of our conversation when he says that the 360-degree review, the way it is commonly done today, is “the most harmful HR practice ever invented.” When this extensive pile of feedback is dropped on someone, and it contains a negative comment or concern, everyone is a suspect. “It’s like the mole, you know? You’ve got to sort out who the mole is,” he says. “It’s just a terrible, awful, trust-killing exercise that I think needs to be rethought and redone.”

He also shared some chief reasons why The Motley Fool gets employee love and respect just right. It’s worth a listen.

Resources Mentioned in This Episode

Let’s continue the conversation. Join us on Twitter (#WorkTrends) for our weekly chat on Wednesdays at 1:30 p.m. Eastern, 10:30 a.m. Pacific, or anywhere in the world you are joining from to discuss this topic and more.

Improve Leadership Training Programs with Manager Feedback

360-degree feedback can bring up a whole host of areas for improvement and goals to be worked towards. Developing based on feedback is important for anyone, regardless of position, experience level or objectives: managers are no exception.

Today major companies don’t simply want people who will listen and carry out: they want creative thinkers who will come up with innovative ideas and solutions. As a result, rather than giving orders, managers must find ways to foster this creativity. This means companies want:

  • Less micromanaging and more autonomy
  • Faster development of new skills
  • Higher employee retention

We explain how the feedback managers receive can establish specific leadership training plans to help improve skills, performance and daily practices to make sure this can all be achieved, and both teams and managers can function in the best way possible, helping both inexperienced or first-time managers and those just looking to take their leadership skills to the next level to improve how they lead their team in this ever-changing modern work environment.

Upward Feedback & where to go with it

Gaining feedback on daily practices, performance and skill sets can be an incredibly useful process. 360-feedback encompasses upward feedback from your team members, helping you to gain perspective from those who work closely with you. Hearing the views of those who work with you every day and have an acute awareness of your leadership style is a great chance to take a step back and re-evaluate. But, of course, once the feedback has been given, the process doesn’t end there. Using feedback for leadership training means that managers are able to work on the specific things that would improve both their leadership qualities and general interactions with their team on both a daily and a long-term basis.

Keep your team!

It’s often said that people don’t quit their jobs, they quit their bosses. If there are multiple issues within a work environment but people generally like their manager, and are satisfied with how they’re being led, they’re less likely to leave their position. Ensuring that managers are not only listening to but acting on the feedback which they receive from their team makes it clear that the team’s views are valued, and means that managers will be able to use the feedback given to communicate with and work more effectively with their team. Managers will be on the road to improvement, and team members will feel both valued and more satisfied, be less likely to leave their position and begin to work more effectively with their managers.

Engagement & Team spirit

After the leadership training has taken place, it’s likely that team morale will increase, communication will improve and employee engagement will be on the rise. It’s not just managers that will improve from leadership training either. Research from the Journal of Business Strategies found that leaders who were able to impact the long-term cohesion of their teams could account for more than 25% of the team’s overall performance. Effective leaders will keep their team communicating well and keep engagement levels up by giving them useful and motivating feedback, and making the organization a positive and impactful place to work.

Using a performance management tool such as a feedback app  has never made it easier for managers to develop. Feedback comes in the form of both real-time updates and reviews where questions can be tailored to find out exactly what skills or traits can be improved. Once feedback is received, it’s collated into an automatic report identifying exactly which skills and practices require focus.

Now it’s time for improvement: continuous feedback that carries on long after the review process gives team members the opportunity to continue the conversation and provide real-time feedback on their manager’s ongoing development. Based on feedback, the best training programs can be devised to develop managers’ skills. Just like your employees, offering regular trainings on key skills will keep managers engaged, motivated to improve their strategies and at the top of their management game!

Summary:

  • Using upward feedback for manager training means team members know their input is valued
  • Successful leaders interact with employees in a way that significantly increases employee engagement and performance
  • Employees communicate better as a team as a result of more effective management
  • Good leadership training based on team feedback will lowers turnover rates

A version of this post was first published on Impraise. 

Photo Credit: Marc_Slavin Flickr via Compfight cc