Understanding 360-degrees

The 360-degree feedback process reduces bias but is not free of

pitfalls. That’s why it has to be used judiciously

360-degree appraisals, which are a widespread phenomenon in

most IT organisations, are hailed as great developmental tools by
many experts. However, an equal number of people pan it as a
process that leaves nothing but bad blood in the company. The
360-degrees feedback takes into account what a professional’s " In most 360-
superiors, peers, juniors and customers think of him. The aim is degree processes,
the key
to find the gap between one’s own appraisal and the perceptions
competencies are
of others. This will in turn enable a professional to analyse his identified and
strengths and shortcomings, and accordingly improve his statements are
framed focussing
performance. While it is true that the system serves as an
on them"
excellent process since it reduces bias, it is not always successful.
It is necessary to create the right culture in the company before - Varda Pendse
Director
introducing the system. If many people are unhappy or their Cerebrus
morale is low, the situation can turn disastrous as some staffers Consultants
will become obvious targets.

360-degree appraisals are beneficial for small and mid-sized organisations, but
where the employee strength is large logistics could act as a deterrent in
evaluating all the employees. In such cases, many large organisations conduct
the feedback on a section of the top-rung managers. “In most 360-degree
feedback processes, key competencies are identified and statements are framed
focussing on these. The statements are focussed on 10-12 competencies but can
range from 45-75. The individual employee will then provide feedback to himself
as well as get feedback from others,” explains Varda Pendse, Director, Cerebrus
Consultants.

Why appraisal is difficult

• Giving effective appraisals is a difficult task. Unless everyone

participating in a 360-degree programme is trained in the art of
giving and receiving feedback, the process can lead to
uncertainty and conflict among team members.
• There may be a gap between an organisation’s business
objectives and what 360-degree feedback programmes
measure. Typical 360-degree feedback programmes assess
competencies that are not directly related to business results,
or are so broad that they aren’t relevant to the average
employee. (Synygy uses 360-degree feedback to reinforce the
company’s core values).
• The time and cost associated with 360-degree feedback also
are stumbling blocks. By trying to capture every nuance of a
worker’s performance, many 360-degree programmes have
become so complex that they require a greater investment in
time and money than they can return.
• Reviewers and those being reviewed fail to follow-up after
feedback. When there are no consequences for poor
performance—which is often the case with 360-degree reviews
—performance does not change. (The results of Synygy’s 360-
degree reviews are used to determine a major part of an
employee’s quarterly bonus, so employees take the review
process seriously).

Source: Synygy
Right reasons

It is necessary that 360-degrees be introduced in the company for

the right reasons (developmental purposes). Milind Jadhav, Senior
Vice-President and Head, HR, Patni, agrees that many a time
organisations introduce such processes since they believe they are
getting popular or because they have read about them in the
Harvard Business Review. “Organisations need to ask themselves
" First, the
certain questions. What is it that we are looking for? Is this
appraisal should appraisal just for a salary change or other developments? If it is
be done by an only for the first reason then the answer is certainly ‘no,’ but if it is
external agency.
Second, the the second then any appraisal benefits,” asserts Jadhav. Patni has
system in place 11,000 employees, and only the top 200 managers are appraised
should be able to through the 360-degree programme. At least 10 people are
capture and
crunch data" involved in each appraisal, which means that almost 2,000 people
get covered.
- Milind Jadhav
Senior Vice-
This appraisal system has more to do with understanding,
President & Head,
HR communicating and articulating in the right way; it is what ensures
Patni
the success of the programme. “If it is not articulated well-enough,
different people will see it differently. For instance, people in
leadership may view things in a different manner from subordinates or peers. It is
necessary to have some kind of common understanding,” points out Jadhav. Lack
of this understanding will spoil relations, create negativism, and have a
dampening impact on team morale and productivity.

Confidentiality vital

Confidentiality is the key when it comes to feedback from peers and direct
reports. It can often backfire if the right culture does not exist in the
organisation. The ‘boss’ might feel threatened or there might be hard feelings
between peers. “I believe that the only people who have benefited from the 360-
degree appraisal are the software vendors who sell the system. In
my organisation I have seen how it has led to a lot of negativity
and hard feelings,” says the operations head of a mid-sized IT
organisation on the condition of anonymity.

Adds Ed Steinberg, Vice-President, HR, Synygy, “A 360-degree

feedback programme is doomed if HR is its only champion. It
needs buy-in from senior management as well. Companies should " The 360-degree
also train people in giving and receiving feedback. Organisations evaluations can
act as an early
that implement 360-degree feedback without first checking and warning for
developing their managers’ feedback skills risk serious damage to potential
problems"
teamwork and morale.” -Ed Steinberg
Vice-President, HR
He points out that to provide constructive feedback, people need Synygy
training and practice. According to him, the gains will outweigh
the high costs of the training as the feedback delivered to participants becomes
focussed, targeting the behaviours associated with value creation and
destruction. “Ultimately, the goal should be to create a culture in which
individuals feel comfortable giving and receiving feedback—both positive and
negative—on a real-time basis rather than waiting for an annual review,” adds
Steinberg.
Pendse believes that the process of collecting the 360-degree feedback
determines to a large extent whether employees give vent to their feelings. “If
open-ended, then the questions are left open for individual interpretation and the
answers vary depending on each individual’s experiences. However, in a
successful process, statements depicting specific behavioural indicators are given
and respondents choose the option that is closest to the behaviour of the
employee. It is difficult for an employee to be only negative or positive since the
statements are specific and focussed. The exceptions are few and rare,” she
adds.

Feedback should be specific, and it should induce action. At Synygy, people are
trained to give specific examples in their evaluations, e.g. “Staying late to finish
the xyz project was a great example of your sense of ownership.” Steinberg
reminds that the deeper the insight into an employee’s performance, the more
likely he or she will understand what areas need to be improved—and how. The
assessments should be given and received with a sense of professionalism.

Key factors for 360-degree feedback

• Positioning of the process

Employees should be made aware that it is a tool to
assess an employee’s leadership competencies.
• Building transparency in the process
It is important that all who are involved in 360-degrees
—the employees and respondents—are educated about
the process and its usage. The peers and direct reports
should be made comfortable by promising confidentiality
of the feedback. Another important aspect is that the
respondent nomination must be done by the employees
themselves.
• Helping the employee to understand the feedback
The 360-degree feedback process will not be impactful
and effective unless efforts are made to help the
individual employee interpret the results. Many
organisations identify a professional counsellor who
works along with the employee to understand the result
and accept the feedback.
• Preparing the development plan
An employee must prepare a development plan which
will need to be monitored and reviewed. Most companies
at this stage involve the manager of the employee to
ensure that there is buy-in of the development plan, and
that the employee also has internal organisation
support. The development plan should include aspects
such as training, job rotation, additional assignments or
agreement by the employee that he will change any
undesirable behaviour that he demonstrates. Most
development plans require 75 percent initiative by the
employee and 25 percent by the company.
• Mentorship and coaching support
Providing support either through an internal resource or
by outsourcing to an external expert. The expert acts as
a friend, philosopher and guide to the individual
employee. The employee can go to this expert to discuss
whatever he may be embarrassed to discuss with
anyone else, or may not know how to deal with.

Source: Cerebrus Consultants

Use of the data

And how is the data generated by a 360-degree appraisal useful? Apart from
providing employees with feedback on their job performance and work habits—as
viewed by their managers, peers and subordinates—it provides another
perspective on an employee’s performance to the management. States Steinberg.
“Co-workers are often the first to realise that there is a performance problem with
a team member, so the 360-degree evaluations can act as an early warning for
potential problems. It is necessary to formulate an action plan for each employee,
and companies should identify and institute rewards and consequences for
individuals related to the outcome of their action plans.”

360-degrees is an effective way of understanding the management style in an

organisation, and how well it can adapt to change. According to Jadhav, the
following factors are necessary: “First, the appraisal should be done by an
external agency. Second, the system in place should be able to capture and
crunch data. And finally, organisations should engage counsellors to train people
before appraisals.”

Multi-rater feedback like that of the 360-degree appraisal system is useful from
the development point of view. People however need to see that there is action
tied to it—that their effort has brought about change in the organisation and
improved productivity.

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