The Manager's Handbook

4The 360 Review

Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body; it calls attention to an unhealthy state of things.

—Sir Winston Churchill

The idea of getting feedback from a person's peers and subordinates was first instituted by the US military in World War I.¹ The goal was to get a sense of a soldier's readiness for promotion. Over time, more and more organizations adopted the technique, which today is known as a “360 Review” or “360,” so called because the idea is to solicit feedback from everyone who interacts with the subject—above, below, and beside them in the organization chart.

Two experts writing in the Harvard Business Review likened the 360 technique to a GPS system: just as getting an accurate location requires multiple satellites, feedback from your manager, peers, and direct reports pinpoints the way to understanding your own effectiveness.² Properly implemented, a 360 is immensely valuable. Companies that effectively use 360s are better able to recruit and retain top performers and develop talent, leading to a more effective and competitive organization.

While the observations of peers and subordinates are powerful management tools, the process can be intimidating, and the results of poor implementation can be devastating. At Stanford, I teach a case in which three coworkers submitted comments about a manager whom we'll call Tony.³ As part of the organization's process, these anonymously submitted ...