HBR's 10 Must Reads on Performance Management

Getting 360-Degree Feedback Right

by Maury A. Peiperl

IF A SINGLE EMAIL can send the pulse racing, it’s the one from human resources announcing that it’s time for another round of 360-degree feedback. In and of itself, this type of appraisal isn’t bad. Indeed, many businesspeople would argue that over the past decade, it has revolutionized performance management—for the better. But one aspect of 360-degree feedback consistently stymies executives: peer appraisal. More times than not, it exacerbates bureaucracy, heightens political tensions, and consumes enormous numbers of hours. No wonder so many executives wonder if peer appraisal is worth the effort.

I would argue that it is. Peer appraisal, when conducted effectively, can bolster the overall ...