At Thornhill, we are often asked if 360° assessments are appropriate for use in performance appraisals. Our answer is “perhaps, and sometimes”.
We prefer 360° feedback to be used in companies to support the personal and leadership development of managers and executives. For this purpose, feedback on a variety of behaviours is given by the manager and a number of colleagues, direct reports, and possibly clients of the participant. This has the advantage of gathering and structuring feedback from a number of sources, creating a pool of often diverse responses which can be very instructive for the participants. They learn what they are seen to do well and also can identify blind spots and possible areas for development.
This diversity of sources and perspectives can become a problem when using the instrument for measuring performance, but as I shall show 360° feedback can form a significant and creative part of performance management.
In general, performance indicators should be specific and measurable: “increase sales by 10% over the year” or “fill 80% of posts within three months of the vacancy arising”. These are typically the kind of indicators that populate performance appraisal templates. For managers, it is their job to ensure that their teams meet these goals.
Almost by definition, objectives like this do not form part of 360° questionnaires – they have either been achieved, exceeded, or not met. This is a matter of measurement, not opinion. In general, managers will not ask colleagues to assess each other’s performance for the purpose of determining salaries, bonuses, and promotion. There are too many conflicts of interest. Also, the manager should be in the best position to judge how well specific objectives have been met.
This means that performance appraisals generally use methodologies other than 360° feedback.
It is true that for more senior managers and executives, much of their life at work requires them to deploy the kind of behaviours contained in a typical 360° questionnaire: building teams, setting clear objectives, holding staff accountable, and instilling the values and culture of the organisation.
So can 360° feedback contribute to assessing performance at this senior level? The answer is “maybe – if you are able to navigate some considerable risks”.
- The risk of bargaining or collaboration. This arises when participants and raters agree to give each other high ratings in order to boost each other’s
- The risk of raters giving deliberately low ratings. This can occur as a result of a competition for scarce bonuses, or when a particular rater has a grudge against their manager and wants to compromise their performance appraisal.
- The risk of closed minds. The danger here is that participants become so focused on how the ratings are affecting their performance score that they close themselves off completely to the opportunity for learning and growth that 360° feedback presents.
Thornhill’s preference is that 360° feedback should be used primarily for personal development and to improve leadership capabilities. We recognise, however, that issues may arise from a 360° report that could become part of a performance plan for the following period. For example, the report may show that a manager does not adequately set clear goals for their staff and hold them accountable for achieving those goals. This includes a willingness to have difficult conversations with, or even discipline, staff who consistently fall short.
In this case, addressing this “development area” could well be a performance indicator with a clear agreement as to how it would be achieved and measured over the next year – with a repeat 360° forming part of the assessment.
Thornhill has worked with a large company where some senior executives agreed to make a customised annual 360° questionnaire a significant part of their performance appraisal, with the intention of introducing it across the leadership over two years. This is certainly possible in companies which have established high levels of trust amongst the personnel concerned, and which have a plan to manage the risks described in this article.
Using 360° feedback for performance appraisals is a matter of “handle with care and know what you are doing” rather than “never touch!”. Thornhill is willing to discuss these issues if you’re thinking about using 360° feedback as part of your performance appraisal process.
Other articles in this series will help you plan and run your 360° feedback project to best achieve the objectives that you have set.
Thornhill consultants will gladly answer any questions you may have to ensure the successful implementation of a 360° feedback process in your organisation.
For more information on Thornhill’s various products and services for all levels within your organisation, please contact us on admin@thornhill.co.za.
Written by Cedric de Beer