Many companies do not take the 360-degree feedback process seriously enough. The HR department normally administers it to the employees, prepare a summary report and send it to the related managers and the top leadership. They, in turn, read it and put it away, never to come back to it again.
Hence there is no outcome out of this extensive process. The leadership mindset continues the way it was without any alterations based on the feedback received. In most cases, the process is a missed opportunity both for the leadership team and the company.
Companies that take this process seriously achieve better results. The 360-degree process may be the same, but the way it is administered is different.
- The leader helps choose who among the team should be administered the test.
- The leader personally interacts with the member and asks him to give candid feedback.
- The report is presented in a group meeting or a one-to-one setting.
- the leader is provided context to understand the data.
- He also gets a set of recommendations to help them create a personal development plan.
- There is followup at agreed-upon intervals to ensure accountability.
The benefits of using the above process:
Increased self-awareness.
people with self-awareness are often puzzled by the behaviour of their team members toward them. When the 360-degree assessment is carried out the leaders compare his self-ratings with the ratings of others. When received from multiple sources the divergence becomes more accurate. Accountability provides a strong stimulus to change. It underscores the seriousness and credibility of feedback. Also, the anonymity of the feedback results in far more honesty and frankness.
Increased likelihood of change.
Improving effectiveness requires behaviour change. A feedback process when done properly increases the chances of the change happening. When leaders realise that they are perceived differently from what they would like to be seen they see no alternative but change.
There is an increased likelihood of change if several leaders go through this together. Social factors make it easier to be more receptive to feedback. There are specific behaviours that are highly correlated with any competency a person is trying to develop. Knowing certain competencies that go hand in hand with the skill you want to develop provide clues to become a better leader.
Business outcomes and leadership.
Another motivation for a leader to change his behaviour is the impact on business outcomes. When they understand that behavioural change can lead to a better performance they are more likely to follow through.
When leadership engagements increase the retention of employees also increases. So does customer satisfaction, profits, productivity and employee satisfaction.
Performance improvement beyond a single leader.
When a leader is perceived as more effective other people in the organisation also benefit. Other are motivated to do the same.
All levels of leadership are inspired by the capability of the top management. Investing in leadership development can pay big dividends.
Companies continue to invest in the 360-degree process because it works. But it has to be implemented in ways that it engages leaders in the process and motivates the leaders to improve. When leaders learn through feedback, identify a weakness to rectify and understand that their leadership is affecting the coworkers, they can use this feedback to improve themselves and the company.
What Makes a 360-Degree Review Successful?
by Jack Zenger and Joseph Folkman
HBR 2020/12
R2G 