360 Degree Feedback Importance of Performance Feedback • The most successful managers & leaders become more effective by learning from feedback Where does feedback fit in ? Business Firm’s Vision Environment & Mission Definition of 360 degree feedback Collecting perceptions about a person’s performance & behavior from the person’s: • Boss or Bosses • Direct Reports • Colleagues • Fellow members in the project team • Internal & external customers • Suppliers 360 degree feedback Superior Customers Employee Peers Self – Rating Direct Report What part of performance is measured ? Characteristics of 360 degree feedback • Unique & Comprehensive multi rater system • The performance of an individual or a group can be measured • An analysis of feedback over a period of consecutive performance cycles is conducted • Response is collected on visible behavior • The results are a mixture of behavioral strengths & weaknesses Response Collected The Feedback Loop The Feedback Loop • Observation: • Natural process – often unconsciously & unsystematically • Some impressions stay, but some are forgotten • Briefing: • Formalization by selection & briefing of respondents • Questionnaire Completion: • Thinking about the participant’s behavior in a conscious & structured way • Report Processing: • Data Collection into a formal report • Feedback: • Respondents’ perceptions expressed in numerical, graphical or written form presented to the participant 6. Reflection: • Understanding & accepting data through self-analysis, discussion with a facilitator or colleagues • Clarification on points which came as a surprise or were unclear 7. Action Plan: • Conversion of participant’s thoughts into a meaningful & practical action plan 8. Changed Behavior: • Time is needed for the changed behavior to become observable by others Characteristics of 360 degree feedback • The employee chooses the basket of raters, from which the final raters are decided randomly • Each rater must constitute a different “party” or “source” with a varying level of interaction on performance • Fair & dispassionate raters must be chosen rather than very close friends or sworn enemies • Not all raters give feedback on all parameters (leadership competencies may be assessed only by direct reports & not customers) Characteristics of 360 degree feedback • Helps getting information from people who routinely work with the employee & are affected by his behavior • Rater Confidentiality is maintained • Feedback from all sources is “aggregated” & then given to an employer • Helps people to give feedback “safely” Degrees of Feedback Peer / Co-workers | Manager | | 180° | 90° __________________ |___________________ 270° | 360° | Direct Customer | Reports/Subordinates | Sample 360 degree feedback Questionnaire Please describe how often this manager uses each of the following behaviors. For each of the practices, choose one of the following responses: • Never, not at all • Seldom, to a small extent • Sometimes, to a moderate extent • Usually, to a great extent • Almost always Please be as honest, objective & accurate as possible This person…. • Gathers information to understand customers’ business strategies • Determines how his/her department’s strategic competencies help customers achieve their strategic objectives • Welcomes opportunities to customize product / service offerings to assure they meet customers’ long-term needs • Keeps abreast of competitors’ emerging trends & initiatives 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 Training on receiving feedback • Look at the overall picture & for patterns of strengths & weaknesses • Be ready to accept negative feedback • How different are scores on a particular category from bosses, peers, colleagues? • Don’t focus on unusually positive or negative inputs • Don’t try to identify the person who made some specific comment • Give yourself time to reflect on the results • Decide on the 3-5 issues to be focused on for improvement over the next few months • The facilitator must ensure that the participant carries out the action plan Growth of 360 degree feedback • Introduced in USA in the 1990s, it is emerging as an important HR tool globally: • In US, more than 90% of Fortune 1000 Companies use some form of multi – source assessment • In UK, 30% of companies use it, numbers are growing • In most countries it is introduced at the top & middle levels only Why do organizations go in for 360 degree feedback ? Long & Complicated but worth the effort; multiple uses: • Changing Role of the Boss: • The supervisor may not be spending much time interacting with the employee • The supervisor may just know the “What” of performance but not the “How” • The role of the boss changes from hander down of judgments on performance based on relatively limited information to being a facilitator, coach or counsellor • Collaboration & Teamwork are being encouraged: • Many achievements are a result of team effort • Team members can assess each other on skills such as communicating, delivering on promises, planning & listening • Increases inter-personal communication among team members 3. Employees are being encouraged to develop themselves by using the organization’s resources: • Because of reductions in employee numbers & removal of job demarcations, employees are valued for their flexibility & multiple skills • More employee participation & empowerment 4. Organizational Development • It helps align & check individual competencies & behaviors with organizational strategies • In the current business environment, success of companies depends on continuous revolution including changes in organizational culture • 360 degree feedback helps bringing about change 5. Evaluation / Validation of Training & Devt Donald Kirkpatrick model for evaluation: • Reaction: • How do participants feel about T&D timing, program content, administration etc • Questionnaire; like a customer satisfaction survey • Also called the “happy form” taking advantage of the end of program euphoria b) Learning: • How much new knowledge & skill have been acquired • Tests / Simulations to demonstrate learnt skills c) Behavior: • To what extent have participants changed behavior at the work place • Has classroom training transferred to the job • Through on the job observation by trainer, bosses & colleagues d) Results: • Effect of changed behavior on important business issues such as improved efficiency, reduced cost, greater customer satisfaction, lower absenteeism, higher sales or better quality of production • As you progress from a) to d), the information becomes more meaningful but harder to obtain • Conventionally, training effectiveness was measured by reaction & learning analysis • But now with 360 degree feedback, behavior & results can be analyzed for measuring training effectiveness 6. HR Related Decision making: Not desirable to use for deciding Pay & Promotion because: • Pay is linked to the “What” of performance • If it is linked to the “How” of performance, it becomes qualitative & subjective • An employee could feel threatened if other parties, especially peers could influence his pay decision • Only part of the remuneration package (annual increase or part of bonus) is determined by 360 degree feedback; rest determined by more conventional means Application & Controversy Usage of 360 degree feedback for employees Development Incorporated Pay & Only (70%) into Performance Promotion Rating (20%) (5%) Checking for organizational readiness • Top management support • Confidentiality • Partnership orientation in the organization • Performance driven culture • Full support & respect of every appraise, irrespective of their performance level • External & internal customer focused culture • Team based working styles • Definition of competencies, desired behaviors & organizational values • Validity of the tool: perform a test run to check relevance & clarity of questions • Higher the quality of feedback, more successful the process will be • HR Managers should stay in touch with appraisers through the process • Fix a deadline for survey completion Getting ready to implement 360 degree feedback • Scope of the system - Use only for top management & key roles ?: • Data Administration will be easier for fewer roles • More emphasis is placed on the “how” of performance rather than the “what” • These roles require succession planning & potential assessment Getting ready to implement 360 degree feedback • System Design: • How will confidentiality be ensured ? • How will rater bias be detected ? • What will be the format for feedback – forced ranking or qualitative assessment? Getting ready to implement 360 degree feedback 3. Collation of feedback & Communication: • If the organization is doing this function in – house then it must decide: • How will feedback be sourced – electronically or as hard copy ? • How will data be entered – through scanning, automatic updation or manually ? Getting ready to implement 360 degree feedback 3. Collation of feedback & Communication: • Who will design the software for collating & analyzing data ? • In what format will data be consolidated to highlight the strengths & opportunities for development to an employee ? Getting ready to implement 360 degree feedback 4. Training on : • Generating awareness about the tool • Usage of this instrument • Consolidating feedback • Giving feedback, especially negative feedback, in a constructive manner • Follow up on development activities after the process is completed 360 degree feedback Model Step 1 Establish contact points for appraise in the organization • Which of these contacts are meaningful? • The higher the number of interactions with a contact more meaningful is the contact for the feedback process 360 degree feedback Model Step 2 - Establish the nature of relationship of the contact point with appraise • The space around the appraise is divided into 4 segments : 360 degree feedback Model Step 2 a) Quadrant I: Represents Direct upward relationships • Quadrant II: Represents Direct downward relationships • Quadrant III: Represents Peer relationships (direct & indirect) • Quadrant IV: Represents all other relationships 360 degree feedback Model Step 3 - What is being assessed ? • What is to be included in feedback ? • Define behaviors of the appraise in the context of the competencies of his job • Assign weights to the competencies & behavior in the context of the job • Depending on the weight, these parameters / criteria are classified into 4 groups / levels: 360 degree feedback Model Step 3 - Level 1 – Highest level of weight (0.75 – 1.00) - Level 4 - Lowest level of weight (0.00 – 0.25) • The feedback corresponding to each of the 4 groups is represented by the 4 concentric circles • The circle closest to the centre has the highest weight 360 degree feedback Model Level 4:Min.impact | Level 1:Max.impact | | | ------------------------------- |---------------------------------- | Level2: | Sizeable impact | Level 3: Little impact | Feedback Source | | Why is this model important ? • 360 degree feedback generates a lot of data • This model helps classify, categorize & analyze data • Puts feedback data into the proper perspective for the appraise Movement to a complete 360 degree feedback is a gradual process for an organization • Starts from taking feedback from the superiors / supervisors • In most cases, the next step is to get feedback from Customers & Vendors since: - It is relatively easy to extend customer surveys to a formal 360 degree appraisal system • The next step is to include subordinate level feedback • Feedback from peers (taken informally sometimes) comes at the end of the process – not thought to be as important – they are competitors for upcoming positions; clash of personal interest; biases 360 degree feedback vs. other assessment methods Motorola Case Study • Background of the Company • One of the world’s leading providers of wireless communications, semi-conductor technology & advanced electrical equipments • Employs 140,000 people in 87 countries • Turnover: Over US$ 30 billion Motorola Case Study • Background of the Company • Grown in size & complexity over the years, but the following core values have remained unchanged: • Respect for people • Uncompromising integrity Motorola Case Study II. Business & People Related Challenges: • Needs to remain a market leader in the ever changing technology scenario • Needs to keep costs low • Needs to unify the hearts & minds of a large & diverse work-force across the globe Motorola Case Study II. Business & People Related Challenges: • Needs to continuously motivate them to respond to market opportunities at an “Internet pace” • The company believes that product or service supremacy alone doesn’t guarantee leadership supremacy • They believe in adding value to the organization by competency & capability building Motorola Case Study III. Actions taken – Totality of Motorola Leadership (TOML): • The starting point was to define the company’s performance & leadership requirements or competencies • 14 competencies were listed Motorola Case Study III. Actions taken – Totality of Motorola Leadership (TOML): The 360 degree survey process : • Was introduced to evaluate one’s effectiveness as a leader (within the context of TOML) • The objective was to assist in accelerating the growth of leaders Motorola Case Study The 360 degree survey process : • The scores of some highly successful leaders within the company were used as the benchmark • Individually tailored development planning - coaching, mentoring, project management & rotations was provided for the appraises Motorola Case Study • Then once the process became an integral part of the company’s functioning (after a couple of years), it was extended for performance assessment & compensation • Initially designed for the VPs, but adopted for a wider range of executives Motorola Case Study The 360 degree survey process training: • Time & Energy was invested in training employees in: • Understanding the analysis & comparative ratings • Using feedback sensibly & positively • To achieve this, partnership was made with the Motorola University & Selection Testing, Assessment & Research specialist organizations (STAR) Motorola Case Study The 360 degree survey process instrument: • The instrument included 60 questions based on TOML principles • Depending on the business from which the leader came, the company had the flexibility to add 20 more questions to understand his / her effectiveness in relation to his business necessities Motorola Case Study • All questions were validated questions • Space was provided for comments & observations by the reviewers Motorola Case Study The 360 degree survey administration process : • The feedback surveys were available over the Motorola Intranet & in the form of printed questionnaires • The HR-STAR organization handled the centralized & confidential data collection & analysis • The HR-STAR organization was bound by the company’s key belief of “uncompromising integrity” to treat every individual with dignity & respect Motorola Case Study The 360 degree survey reports : • The reports were kept simple • The reports went straight to the participants • It was left to the recipients to use the data • Training was provided to interpret the statistical data in the reports Motorola Case Study IV. Motorola Experience: • The roll – out was smooth • Participants thought the survey was worth the time & effort • Appraisers gave frank feedback & comments • The comments helped the company understand the leadership issues & the inputs needed Motorola Case Study • The process was institutionalized & it was compulsory for everyone to cross the TOML score to be promoted as an officer • The company established a common understanding of what it collectively stood for through the TOML competencies • The company achieved “the alignment of hearts & minds of employees globally” – very important for competing globally Motorola Case Study • Individual development plans were implemented through the Motorola University – known globally for excellence in training & education • Today, each employee can voluntarily choose work partners to provide 360 degree feedback • Officers had been openly sharing their feedback results with each other to improve themselves • The process has now become a major source of self - development