The Science Of 360º Feedback: Guidelines For Best Practice

The Science of360º Feedback:Guidelines forBest PracticeJ u l i e C a r s we l l , P h D & Ro b y n M a c D o u ga l l , M S cS I G M A A s s e s s m e n t Sy s t e m s, I n c .

What is a 360ºFeedbackSystem?360 degree feedback or multi-source feedbacksystems are designed to gather information about aleader’s performance from multiple perspectives(e.g., superiors, peers, direct reports).WWW.SIGMAASSESSMENTSYSTEMS.COM2

Why use a 360º feedbacksystem?360 feedback systems are used primarily forleadership development purposes.They are intended to support this process byenhancing leaders’ awareness of their strengths anddevelopment areas.The use of 360 has proliferated over the past decadewith the introduction of online 360 platforms thathave enhanced the ease and efficiency with which 360assessments can be developed and deployedthroughout the organization.WWW.SIGMAASSESSMENTSYSTEMS.COM3

Do 360º feedback systemswork?Recent research, including a meta-analysis of 26longitudinal studies (Atwater & Brett, 2006; Fleenor,Taylor, & Chappelow, 2008; Reilly, Smither, &Vasilopoulos, 1996; Smither, London, & Reilly, 2005),has shown that 360-degree feedback can significantlyincrease: Self-awarenessIndividual and team effectivenessBehavior changeInsight about how to achieve successHowever, the success of any 360-degree feedbackinitiative hinges on the design and implementationof the assessment.Failure to pay sufficient attention to either componentcan lead to issues that reduce its relevance and value.WWW.SIGMAASSESSMENTSYSTEMS.COM4

Potential Issues?In our own research with 360-degree assessmentswe’ve uncovered a few key issues associated with theiruse that are more widely echoed in the literature (seeNowack and Mashihi, 2012 for an evidence-basedreview of 360-degree feedback assessments).The following pages describe: Potential issues with 360 assessments Practical solutions for avoiding and overcomingthese issues Tips for designing and implementing aneffective 360 degree feedback systemWWW.SIGMAASSESSMENTSYSTEMS.COM5

List of Potential Issues with360 Degree FeedbackSystems1. Striking the optimal rater balance2. The “garbage in, garbage out” principle3. Ratings clustered at the high end of the scale4. Beware of the “one-size fits all” approach5. The “now what?” phenomenonWWW.SIGMAASSESSMENTSYSTEMS.COM6

1Designing a360System:PotentialIssue #1Striking theoptimal raterbalanceChoosing the optimal number ofraters is like discovering theminimum number of puzzle piecesrequired to solve a puzzle. Themore puzzle pieces we correctlyassemble, the more confident webecome that we are seeing thecorrect picture (Nowack & Mashihi,2012). Consider these strategiesfor rater selection: Find a “critical mass.” It may not benecessary to invite all co-workers toparticipate in a 360 feedback process.However, ensure that the leader invitesenough raters with diverse andrepresentative opinions and perspectivesto enable him/herself, and otherstakeholders, to be confident that a clearpicture of performance will emerge. Think quantity and quality. Accuracywill be enhanced as the number of ratersincreases. However, this will only bemeaningful and useful if the leaderchooses raters who take it seriously andprovide meaningful feedback. Consider collaboration. Raternominations from multiple sources canenhance acceptance of the results. It iscritical that the leader identifies his/herraters; however, input from his/hermanager and HR can further enrich thefeedback process from M7

2Designing a360System:PotentialIssue #2The “garbagein, garbageout” principlePoor quality input will compromisethe output. In other words, theveracity of 360 assessments relieson the ability (and motivation) ofraters to accurately andmeaningfully report on a leader’sperformance. Consider thefollowing strategies to enhance thequality and accuracy of feedback: Choose (raters) wisely. Accuracy andmeaning cannot reasonably be expectedwhen the rater lacks knowledge orexperience working with the leader.Accuracy of performance ratings can beenhanced by ensuring checks are inplace to verify that raters are familiarenough with the performance of theleader to provide meaningful feedback. Make it concrete and observable.Ensure performance competencies aremore concrete and observable such asLeveraging Others’ Expertise (versusmore abstract) to reduce raters’ relianceon assumptions and/or inferences. Provide a frame of reference. Recentresearch (Hoffman et al., 2012) suggeststhat the rating task can be improved ifraters are given definitions and examplesof effective and ineffective behaviors foreach competency being measured.WWW.SIGMAASSESSMENTSYSTEMS.COM8

3Designing a360System:PotentialIssue #3Ratingsclustered atthe high endof scaleThere are common rater errors thatcan obscure a given leader’s “truescore” on a rating scale. Our ownresearch demonstrates that mostraters tend to give positive (high)ratings, indicating that there maybe a leniency effect influencingratings. Consider the followingstrategies to minimize this issue: Try a different rating scale. Variabilityin ratings may be enhanced by usingalternative response scale formats suchas relative percentile scales (Goffin &Olson, 2011). With this type of scale,raters will be asked to “rate thisindividual’s performance relative to otherindividuals who report to you” to addcontext to the rating process. Train your raters. Rater training can beimplemented before the process beginsto educate and caution raters againstcommon rater biases. These biasesinclude being overly lenient, orexhibiting “halo effects,” which meansgeneralizing from one aspect of aperson’s job performance to other areas. Hold raters accountable throughcomments. To promote accountabilityfor a particular rating, feedback systemscan be designed to “require” or “stronglyencourage” comments for ratings thatare either exceptionally high or low.WWW.SIGMAASSESSMENTSYSTEMS.COM9

4Designing a360System:PotentialIssue #4Beware of the“one-size fitsall” approachIf 360 systems are administeredwithout consideration of theleadership role and level, theorganizational structure andcontext, and the industry in whichthe leader works, the relevanceand ultimately the value of theprocess will be diluted. Considerthe following strategies tominimize this issue: Make it relevant. Ensure that thecompetencies included in the assessmentare relevant to the context – consider theleadership position under evaluation, thecompetency framework of theorganization, and what’s required forsuccess in the industry. Be selective. Conduct a “job analysis” byselecting subject matter experts (SMEs)who have the most knowledge about therole, and asking them to select relevantcompetencies for inclusion in theassessment from a list of potentialcompetencies. This process can beformal (via assessment or survey) ormore informal (via discussion or focusgroups).WWW.SIGMAASSESSMENTSYSTEMS.COM10

5Designing a360System:PotentialIssue #5The “nowwhat?”phenomenonDevelopment efforts will be futilewithout a plan to leverage theresults of the 360 feedbackprocess. Best practice suggeststhat greater transfer of learningand goal setting occurs when theprocess is supported by coachingor debriefing sessions (Nowack, 2009). Hire a coach. Research shows that aftersix weeks of executive coachingfollowing 360 degree feedback,performance increased by 60% (Thach,2002). Coaches can greatly enhanceinterpretation of results, manageemotional reactions to feedback, analyzestrengths and weaknesses, inspire action,promote goal setting, and enact behaviorchange through meaningful activitiesand resources. Build a supportive culture. Leadersworking in environments with a morefavorable view of 360 feedback and asupportive culture tend to experiencegreater transfer of learning (Martin,2010). Research also clearly supports thecritical role managers can play in thelong-term success of a 360 feedbacksystem with benefits such as enhanceddevelopment goal setting, greatercollaboration on ideas for improvementand higher performance ratings (Smither,London, Flautt, Vargas, & Kucine, 2003).WWW.SIGMAASSESSMENTSYSTEMS.COM11

Final thoughts 360-degree feedback assessments can be a powerfuldevelopment tool for organizations to help developthe potential of their employees, provided that anappropriate assessment is selected and implemented,and interpreted with care.WWW.SIGMAASSESSMENTSYSTEMS.COM12

How SIGMA Can HelpOur PhilosophyWe believe that a systematic, measurement-driven approach toleadership development designed to identify individuals who possessthe required competencies to succeed as leaders is critically importantto an organization’s growth, development, and sustainability.Our ApproachWe have developed innovative tools and processes to facilitateleadership development. Our process involves:1.Partnering with the client to establish a communication strategy2.Determining critical competencies required for effectiveness in3.Administering 360 leadership assessments to measure leaders4.Developing leaders and identified high potentials and leaders5.Following up and tracking progress on leadership goals at thedesigned to set the context for leaders or high potentials byproviding information on “what,” “why,” and “when”the position or role via formal online benchmarking surveyand high potentials on identified competenciesvia SIGMA’s coaching serviceindividual and organizational levelWWW.SIGMAASSESSMENTSYSTEMS.COM13

How SIGMA Can HelpMore About SIGMA’s Coaching ServiceWe are deeply committed and connected to our work ofenhancing leadership performance. We work in partnershipwith leaders to:1. Enhance awareness of strengths and developmentalpriorities on competencies through assessment2. Explore what they need to do differently to be moreeffective and balanced3. Equip them with the tools to leverage their strengthsin achieving leadership goals4. Identify the information and resources they need tofacilitate growth in identified developmental areas andsustain behavior change over the long-termWWW.SIGMAASSESSMENTSYSTEMS.COM14

How SIGMA Can HelpCharacter Matters.Our leadership assessment and coaching services canbe elevated to include an assessment of leadercharacter.Our Leadership Character Insight Assessment (LCIA360) is designed to:1. Equip leaders and organizations with a deeperunderstanding of character and the language todiscuss leader character in a meaningful way2. Provide a platform to initiate learning anddevelopment around leader character3. Identify and address problems that stall careers andcontaminate working relationships4. Augment a competence-based leadership assessmentprocess with a unique, powerful predictor of M15

Contact UsFor more information on our 360 assessments and coachingservices, please contact us.In US:SIGMA Assessment Systems, Inc.PO Box 610757Port Huron, MI 48061-0757P: 800-265-1285E: support@sigmahr.comW: www.SigmaAssessmentSystems.comIn Canada:Research Psychologists Press, Inc.PO Box 3292, Stn. B.London, ON N6A 4K3P: 800-401-4480E: support@sigmahr.comW: YSTEMS.COM16