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In This Issue
Report available for download
Research topic - induction....
360° Feedback - making the business case (the 'why')
360° feedback - getting down to detail (the 'how')
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Report available for download 
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Our report 'What companies are doing to develop their senior leaers' can now be downloaded directly from our website. To get your free copy click
here

New research topic - induction.
We are still looking for companies to take part in our new research into induction practices and would be delighted to hear from you.
 For further information please contact us and quote 'induction' and we will be in touch with more information.
 
 
LCP Newsletter
Greetings!  
 

This month our first article has been written by our guest author, Vandy Massey, the CEO of Engauge, a specialist provider of 360° reports. With an accounting background she is well placed to argue the financial business case for implementing 360° systems into an organisation.

 
So if you are considering introducing 360° feedback into your organisation then our second article highlights some of the good practice guidelines you will need to consider.
 
Happy reading!
chart360° feedback - making the business case (the 'why')
 
As a senior manager, you know that to build a strong business case for training your managers, you should implement a 360°feedback programme, but how do you measure the return on investment? If you're measuring the sales of a product or service, then it's easy. Not so, however, with the more intangible contributors to business success.
There are articles on the web that claim research proves a 700% ROI for 360° feedback, and one leading UK 360° provider claims that, "an abundance of academic research supports 360°'s positive impact on people and performance." And while you may agree with them, presenting this to the board may require some harder and faster factual evidence to get you the go-ahead you need.
Why 360°?
A growing number of major companies are using 360° feedback as an effective performance management tool
The practice of having an appraisal that only provides a manager's perspective on performance is seen as outdated and lacking in depth
360° feedback gives people with an all-round perspective of their performance, and the relationships they have with different groups of colleagues
Providing people with a way of prioritizing their development actions increases awareness of areas they would most effectively focus on, thereby fast-tracking their progress  
The knock-on effect...
 
Consider this: if well-planned 360° feedback produces a 5% improvement in performance (which, by all accounts, is a fairly conservative estimate) ...
 
Let's say a theoretical manager's annual salary is £50k; a 5% improvement in performance gives the organization an additional £2500 value from that employee.
 
If the average cost of a 360° review and one-to-one feedback session costs approximately £400, you have a strong argument that the return on investment for a 360° review is over 600%.
 
But the use of 360° feedback can create even more value than this, which becomes clear when you look at the knock-on effect of 360-initiated performance improvement:
 
One senior manager took great pride in his philosophy of being direct and candid. He saw this as a personal asset and a way of managing effectively.  Colleagues and staff had a different perception - their feedback in his 360° review made him aware that he was seen as arrogant and unapproachable. In fact, some people actively avoided dealing with him. Realisation of this unintentional effect persuaded him to adapt his style, resulting in improved performance from his subordinates who now felt comfortable to initiate contact with him.
 
Extending the example calculation above to include an additional 5% performance improvement from his four direct reports (each earning £30k) could add an extra £6k to the return on this manager's 360° review.
 
Looking at it in this light, it doesn't make sense not to use 360° feedback as part of a company's performance management solutions.  Use this model with the numbers for your organisation and see what you think.
Key issues
Arguments likely to be raised against the use of 360° feedback relate to confidentiality, validity, and effectiveness. These can be addressed and any issues overcome if the solution includes solid planning and a robust process.
Confidentiality - this is a critical issue. Without an iron-clad assurance of confidentiality, many colleagues and direct reports will feel unable to give completely honest feedback. Consider the case of the 'candid ' manager. This is exactly the sort of circumstance in which honest feedback is essential, and can only be given with a guarantee of confidentiality. Using a professional third party solution provider is the only way to give this sort of guarantee - making sure to check that reviewer anonymity really is protected by the supplier.
Validity - using a solution that is tailored to your needs ensures that it supports the organisation's strategy and reinforces behaviours that further the right goals.
Effectiveness - this is a multi-faceted element:
  1. First and foremost it's important to get buy-in from senior managers. Their leadership and support on the use of 360° feedback is critical to its success
  2. The 'what next' question is key to gaining the maximum impact from your 360° reviews.  They should be followed up with one-to-one feedback sessions during which practical, informed action plans are created
  3. Measurable goals set within these action plans will help you define the success of the programme at a later stage
  4. Workshops for all respondents on how to give good feedback, can be invaluable
  5. Simplify things - having a 360° solution with all the bells and whistles could be tempting, but to get buy-in from the whole organisation, give them a system that is easy, clear, and quick to use.  It will reduce the cost of gathering 360° feedback, and gets better results because people can focus on what they want to say rather than struggling with a complex system.
Vandy Massey is the CEO of 'Engauge' a specialist provider of 360 degree feedback, for more information please visit www.engauge.co.uk
360° feedback - getting down to detail         (the 'how')
 

As we've already shown, 360° feedback can provide structured and in-depth information about an individual's current performance and if planned - and implemented - well, has a number of benefits to the organisation as well as the individual.2010

Although 360° feedback is a powerful tool it is also important to remember how sensitive it can be and therefore understanding best practice is fundamental to getting the design and implementation right.   To help you, here are some of the key things to consider before going down the 360° feedback route:

Planning

1.     Decide why you want to do it

There are a number of reasons for undertaking 360° feedback; you need to be absolutely clear about the purpose for your own organisation and how it will align with your strategic goals and current processes (e.g. performance appraisal system). The clarity of the message will be key to successful communication and roll-out of the process.

2.     Involve your employees

Inevitably there will be cynicism, and consulting with your employees early in the design phase will achieve two things: a) it will provide them with an opportunity to raise their concerns and allow you to allay some of their fears and b) it will build up trust and visibility of the scheme.

3.     Decide how and from whom you will gather feedback

During the planning stage you will need to discuss:

·      How the feedback with be gathered and stored to comply with confidentiality and data protection requirements

·      How respondents (feedback givers) will be chosen and how many to include

·      Should the feedback be anonymous or attributed?  There are pros and cons for each argument; for more information click here

·      Good practice recommends providing detailed guidelines for recipients on how to choose their feedback givers.

4.     Design the questionnaire and feedback report

The questions need to be valid and relevant to the recipient's job.  They also need to be clear, concise and discreet to avoid any ambiguity and should reflect the behaviours which relate to actual job performance.

Most 360° feedback reports contain both quantitative and qualitative data and it is important that the information is presented clearly with graphics and summaries of key messages.  If you would like an example of a 360° feedback report please click here and type '360° report' in the subject line.

Implementation

5.     Pilot the process

Once the questionnaire and report have been designed it is good practice to pilot the scheme and make any tweaks before full roll-out.

6.     Plan and deliver the communications carefully

Communicate the purpose of the scheme, the process and time frames, where they can get support and help as well as how data will be collected and stored.

7.     Providing the feedback report

It is good practice to brief or train the recipients and respondents before they complete and receive the feedback report.  In particular you need to consider how you want them to use the outputs from the report such as including some items in their personal development plan. 

Recipients may need help in taking away the key messages and turning them into credible and actionable feedback. External facilitators are often used to help with this part of the process.

Review

8.     Monitor and evaluate the process

The previous article discusses how to measure the ROI.  You can also encourage both recipients and respondents to comment on their experiences of the 360° and how they felt it benefited them?

Also remember to review the practical elements such as how easy was it to send out and get responses back etc.

If you are considering introducing a 360° feedback process into your organisation and would like to find out more please contact us at enquiries@lcp.org.uk or phone 01273 707404
Learning Consultancy Partnership provides bespoke coaching and development solutions to meet the specific needs of organisations, at all levels.
 
To find out more, please visit our website at http://www.lcp.org.uk.