360-Degree Feedback as an Instrument for Managerial Development

As a senior manager, it is important to continuously develop your capabilities. Those that can prove consistent success will be noticed by superiors and headhunters and will climb the career ladder. To build on leadership qualities, it is important to have a realistic self-assessment about ones current situation. 360-degree feedback provides this type of comprehensive approach.

360-degree feedback

The 360-degree feedback puts the executive in the spotlight

Senior managers spend about 80 percent of their working time communicating in both internal and external meetings and projects. There is therefore little time for talking directly to superiors. In order to objectively assess their executives’ management competencies, many companies employ 360-degree feedback.

By means of a validated questionnaire, feedback is collected from various points of view. The executives’ direct reports, direct superiors, internal and external customers, team members or colleagues take part in the survey.

With a 360-degree feedback, the managers themselves also assess their personal qualities. The comparison between external impressions and their own provides the executive with important reference points for further development.

If only direct reports and superiors are questioned, the result is referred to as a 180-degree feedback. The 360-degree feedback is one of the most effective and objective methods of leadership development. Around 90 percent of US Fortune 500 companies use this method.

360-degree feedback methodology

In 360-degree feedback, a validated questionnaire on various characteristics is used to produce an average value in individual groups. Examples include:

  • Strategic orientation
  • Delegation
  • Decision making
  • Supervision, etc.

Several questions on each characteristic must be asked in order to cover every dimension. Usually, there are five to seven questions per characteristic. The questionnaire should be kept as short as possible and contain clear questions.

Values are calculated from the various groups – direct reports, customers, superiors, colleagues – as well as from the executive in question. Afterwards, the results are presented side by side.

The manager therefore gets an overview of where differences in perception lie within each group. If further personal development is needed, targeted coaching can be introduced.

Limitations of 360-degree feedback

360-degree feedback stands and falls with the quality of the questionnaire used. Using personality, leadership or motivational models such as the Reiss Profile, DiSC model or situational leadership theory in the development of the questionnaire has proven to be less successful.

The results are about as certain as a horoscope, and the executive will more than likely have problems with its practical use. This is a result of the Barnum effect, which states that people have a tendency to accept such all-encompassing statements about their own character traits as true. In fact, a validated questionnaire must be used in order to reach clear conclusions.

Problems also occur when judging character traits. These are difficult for executives to change and therefore their evaluation does not contribute much. Leadership style and motivation are also not good bases for developing a 360-degree feedback questionnaire, as they are subjective interpretations that include various perspectives.

The 360-degree feedback questionnaire must deliver concrete results that the executive can work with. The executive should not be able to water down or cover up any unflattering results. Therefore, good 360-degree feedback also provides an objective assessment of the individual.

Advantages of 360-degree feedback

The anonymity within the 360-degree feedback is one of the method’s great strengths. It allows a true assessment from the actual viewpoint of those questioned. This not only contributes to the quality of the results but also improves the corporate atmosphere.

However, 360-degree feedback is not recommended in crisis situations. Here, it is mostly used as an instrument for political opinions.

In companies with no feedback culture, 360-degree feedback must be established cautiously so results are meaningful. If a company establishes a high-quality 360-degree feedback system, it is one of the best ways to precisely highlight further development potential to their own executives.



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