360 Degree Feedback 1

360 Degree Feedback 1

Importance of Performance Feedback The most successful managers & leaders become more effective by learning from feedback 2

Where does feedback fit in ? Business Environment Organizational Planning Firm’s Vision & Mission Functional Planning Individual Performance Planning Competencies, Job Responsibilities Performance Assessment Impacts Commitment Performance related Decision Making Salary, Training Career Growth 3

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 4

360 degree feedback Superior Customers Employee Self – Rating Peers Direct Report 5

What part of performance is measured ? Manager & Employee May be confidential The “What” of Performance Targets Daily Responsibilities Contribution to projects The “How” of Performance Competencies 360 degree Feedback Visible Desired Behavior Expected Demonstration Of Organizational Values & Attitudes; “living the values” 6

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 7

Response Collected Expected Results / Match with self assessment A B Developmental Areas C Strengths D Discrepancies Hidden Strengths Unexpected Results / participant’s score differs from that of respondents

The Feedback Loop 8 Changed Behavior 7 Action Plan 1 Observation Minimum Time Reqd 2 months 2 Briefing 3 Questionnaire Completion 4 Report Processing 6 Reflection 5 Feedback

The Feedback Loop 1. Observation: Natural process – often unconsciously & unsystematically Some impressions stay, but some are forgotten 2. Briefing: Formalization by selection & briefing of respondents

3. Questionnaire Completion: Thinking about the participant’s behavior in a conscious & structured way 4. Report Processing: Data Collection into a formal report 5. Feedback: Respondents’ perceptions expressed in numerical, graphical or written form presented to the participant

6. Reflection: Understanding & accepting data through selfanalysis, 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) 13

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” 14

Degrees of Feedback Peer / Co-workers 180 270 Customer Subordinates Manager 90 360 Direct Reports/ 15

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: 1. 2. 3. 4. 5. 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 . 1. 2. 3. 4. 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: 1. In US, more than 90% of Fortune 1000 Companies use some form of multi – source assessment 2. In UK, 30% of companies use it, numbers are growing 3. In most countries it is introduced at the top & middle levels only 19

Why do organizations go in for 360 degree feedback ? Long & Complicated but worth the effort; multiple uses: 1. 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 20

2. 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 21

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 22

5. Evaluation / Validation of Training & Devt Donald Kirkpatrick model for evaluation: a) 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: a) Pay is linked to the “What” of performance b) If it is linked to the “How” of performance, it becomes qualitative & subjective c) An employee could feel threatened if other parties, especially peers could influence his pay decision d) Only part of the remuneration package (annual increase or part of bonus) is determined by 360 degree feedback; rest determined by more conventional means 27

Controversy Application & Controversy Self Devt Training Course Team Building Perf Mgt OD Evaluation/ Validation Remuneration R e m

Usage of 360 degree feedback for employees Development Only (70%) Incorporated into Performance Rating (20%) Pay & Promotion (5%) 29

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 30

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 31

Getting ready to implement 360 degree feedback 1. Scope of the system - Use only for top management & key roles ?: a) Data Administration will be easier for fewer roles b) More emphasis is placed on the “how” of performance rather than the “what” c) These roles require succession planning & potential assessment 32

Getting ready to implement 360 degree feedback 2. System Design: a) How will confidentiality be ensured ? b) How will rater bias be detected ? c) What will be the format for feedback – forced ranking or qualitative assessment? 33

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: a) How will feedback be sourced – electronically or as hard copy ? b) How will data be entered – through scanning, automatic updation or manually ? 34

Getting ready to implement 360 degree feedback 3. Collation of feedback & Communication: c) Who will design the software for collating & analyzing data ? d) In what format will data be consolidated to highlight the strengths & opportunities for development to an employee ? 35

Getting ready to implement 360 degree feedback 4. Training on : a) b) c) d) Generating awareness about the tool Usage of this instrument Consolidating feedback Giving feedback, especially negative feedback, in a constructive manner e) Follow up on development activities after the process is completed 36

360 degree feedback Model Step 1 Establish contact points for appraise in the organization 1. Which of these contacts are meaningful? 2. The higher the number of interactions with a contact more meaningful is the contact for the feedback process 37

360 degree feedback Model Step 2 point Establish the nature of relationship of the contact with appraise 1. The space around the appraise is divided into 4 segments : 38

360 degree feedback Model Step 2 a) Quadrant I: Represents Direct upward relationships b) Quadrant II: Represents Direct downward relationships c) Quadrant III: Represents Peer relationships (direct & indirect) d) Quadrant IV: Represents all other relationships 39

360 degree feedback Model Step 3 - What is being assessed ? 1. What is to be included in feedback ? 2. Define behaviors of the appraise in the context of the competencies of his job 3. Assign weights to the competencies & behavior in the context of the job 4. Depending on the weight, these parameters / criteria are classified into 4 groups / levels: 40

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) 5. The feedback corresponding to each of the 4 groups is represented by the 4 concentric circles 6. The circle closest to the centre has the highest weight 41

360 degree feedback Model Level 1:Max.impact Quadrant IV: Quadrant I: Others Direct Superior ------------------------------- --------------------------------- Level2: Level 4:Min.impact Level 3: Little impact Quadrant III: Peer Group Quadrant II: Direct Subordinates Sizeable impact Feedback Source 42

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 43

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 44

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 45

360 degree feedback vs. other assessment methods Criterion employee ability surveys tests personality perf inventories appraisal Devt centres 360 degree feedback Use All firms medium/ large firms medium/ large firms Most Most common; all medium/ firms large firms Relatively new in EU purpose diagnosis of org issues selection/ Selection, promotion Devt, Counselling Improving perf, rewards, motivation, succession planning, identifying potential selection, For teams promotion Or devt Individual; MultiPurpose Excl selection

Criterion employee ability surveys tests personality perf inventories appraisal Devt centres Coverage Almost AnythingOpinions, Attitudes, Safety, Training, Values Specific Skills Personality Or cognitive Style Result or competency Competen competency based -cy broken based down into detailed behaviors Method Questionn -aires, Interviews, Focus groups Questionnaires or exercise Questionnai -res inviting to describe preference, feelings, Typical modes of action Discussion between boss & appraisee based on appraisal documents Interviews, psychometri c tests, perf appraisal data, simulations, exercises 360 degree Questionn aire on paper, disk or network

Criterion employee surveys ability tests personality perf inventories appraisal Devt centres 360 degree Respondents All or sample of employees Particip ants Participants Boss & appraisee Trained assessors Particpant, boss, raters Admn Questionna -ires distributed by mail with explanatory letter; answers kept confidential Trained By self or adminis controlled trators / conditions controll ed conditio ns Organized by HR Complex variety of tools Questionn aire sent out by participant; collected externally or at a central internal point

Criterion employee ability surveys tests personality perf Devt inventories appraisal centres 360 degree Answers / Rating Scores Scale Choosing No right or the right wrong option; answers pass or fail element Rating scales; based on opinion or observation of the boss & appraisee Depends on specific methods used Rating scales & open ended answers Feedback Initially to those who commissio -ned the survey; later to other parties too To HR / line managem ent; not always to participant By the boss to the appraisee Developme ntal feedback to participant Individual feedback report discussed with a trained facilitator Usually given to participant face to face by the facilitator

Motorola Case Study I. Background of the Company One of the world’s leading providers of wireless communications, semiconductor technology & advanced electrical equipments Employs 140,000 people in 87 countries Turnover: Over US 30 billion 50

Motorola Case Study I. Background of the Company Grown in size & complexity over the years, but the following core values have remained unchanged: a) b) Respect for people Uncompromising integrity 51

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 52

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 53

Motorola Case Study III. Actions taken – Totality of Motorola Leadership (TOML): 1. 2. The starting point was to define the company’s performance & leadership requirements or competencies 14 competencies were listed 54

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 55

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 56

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 57

Motorola Case Study The 360 degree survey process training: Time & Energy was invested in training employees in: a) Understanding the analysis & comparative ratings Using feedback sensibly & positively b) To achieve this, partnership was made with the Motorola University & Selection Testing, Assessment & Research specialist organizations (STAR) 58

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 59

Motorola Case Study All questions were validated questions Space was provided for comments & observations by the reviewers 60

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 61

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 62

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 63

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 64

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 65