Making the 360 Evaluation Work

From time to time business leaders may perceive that their enterprise is not sailing on an even keel. Perhaps morale has dipped, productivity is off, or employees are heading out the door. A 360 evaluation can be an effective remediation tool, using feedback provided by peers, superiors, subordinates, and individuals themselves to rate the effectiveness of key contributors or leaders. Most senior leaders are familiar with the potential value of 360 evaluations. But if not carefully executed, these evaluations can do more harm than good. It is important to identify at least 8-10 raters for each subject; otherwise the results are not reliable. These raters should be selected collaboratively by the subject and his/her manager, and should include both fans and critics. A critical part of the 360 process is confidentiality. Raters will not be candid unless they are assured of their anonymity, especially if they are rating their boss. Subjects will often try to guess who said what, so it is essential that the 360 process absolutely protects the confidentiality of the raters. The feedback process may be the most important determinant of the effectiveness of a 360 evaluation. An evaluation report cannot simply be left on the subject’s desk. Without constructive guidance, the subject is unlikely to interpret the data accurately. High-achieving individuals often focus exclusively on critical feedback and ignore the positives. A subject may become demoralized if the feedback differs substantially from his/her self-perception. And the anonymity of the 360 process sometimes means that raters write very cutting comments. So it is essential that the professional overseeing the 360 process meet with each subject to help him/her make sense of the feedback and put it in perspective. Best practice is that this coach then works with the subject to create a development plan to build on his/her strengths and make the necessary behavior changes. The subject must commit to working on change, not merely acknowledge that something is wrong. As senior leaders continue to guide their firms through a challenging economic environment, it remains critically important to mold and maximize the talents of their managers. Properly undertaken and pursued, the 360 evaluation can provide powerful results. The ideas in this post are condensed from a recent issue of our newsletter, "The Cautious Optimist." They are drawn in part from Harriet Edelson’s article, “Do 360 Evaluations Work?” in the November 2012 issue of the American Psychological Association’s "Monitor on Psychology."