360 Degree Performance Appraisal - Still Looking for the Key That Unlocks High Performance?

Many organizations use 360 degree appraisal to support management and leadership training or enhance performance review, coaching and self-development. Formal Appraisal Systems may also incorporate wider 360 degree assessment. However, new research suggests that most 360 design does not reflect Best Practice, and the value of the process could be greatly improved by making a few simple, but important changes.

360 degree assessment is frequently based on the personal competencies required in a given role. This is a good start point, and the first step involves making a distinction between a 'threshold competency', often linked to knowledge or skill that is essential to performing a job, but does not contribute to high-performance, and the competencies that describe the attributes and actions e.g. problem solving, team leading, initiative and resilience, which are required for high performance. In a nutshell, competency models are intended to differentiate superior performance from average and poor performance. This means, for example, that "Communication Skills" might describe threshold attributes contributing to competencies associated with Influencing Others or Building Relationships. The problem is that the precise mix and type of competencies required for superior performance will depend on the context and the type of role under consideration.

It becomes clear that competencies used in 360 assessment should relate to observable behaviour, and most importantly, how well the job holder meets the expectations of others. For modern, forward-looking organizations, 360 design is strengthened by thinking about the individual's effectiveness in meeting the standards or specific requirements of different groups of work associates. These Groups may include customers, external partners and stakeholders. This helps move the focus of the competency model from something rather 'general' (and possibly based on HR language) to one that is anchored in Context and real-life work relationships

The focus on Context can be enhanced with the latest 360 degree feedback software. Specific questions can be directed to different groups of respondent, making the process far more relevant and less time-consuming. Described as Intelligent 360 Feedback, this new approach can also include written comments that are Context and Scenario specific. The result is a 360 degree appraisal and development process that:

(1) achieves far more meaningful feedback,
(2) supports effective management of Role Relationships,
(3) encourages more open discussion of performance-related issues, and
(4) strengthens the reliability and validity of the design.

This approach is central to the emerging concept of the 360 Degree Leader that places the Focus Person i.e. the subject of the 360 degree assessment, at the centre of various role relationships that affect performance outcomes.

Most 360 degree feedback design is still based on the organization's standard set of competencies or a pre-defined model supplied by a consultancy firm. Not only is the reliability of these models often untested, but most of the software systems still rely on a single set of questions that are directed to all respondents. This makes little sense if we are concerned about how we get the best return on our 360 investment.

So, to get the most from 360 degree appraisal, ask yourself these questions:

* Do you want to waste time asking questions that are not relevant?
* Who best understands the concerns of each group of respondents?
* Are Direct Reports concerned about the same issues as Customers or Colleagues?
* Does the 360 degree feedback software offer the flexibility to explore these issues?

The key to developing the 360 Degree Leader is to increase awareness of the challenging scenarios and the associated competencies that underpin effectiveness. Intelligent 360 degree feedback software can also provide 360 Group Reports, based on all feedback data filtered by such categories as Region, Division and Office. These insights can assist with training needs analysis and strengthen practical leadership skills training.

Effective individual feedback is also essential for Balanced Processing of information, one of the building blocks of Authentic Leadership. (See other articles for more on this topic)