Bring your leadership compass into the 21st century.

1. 11111111111
Getting more
out of 360°
A whitepaper examining the role of flexible 360 degree
reviews in embedding feedback culture in organizations
Expanding the scope of 360° feedback programs

2. 2QUESTBACK 360°
FEEDBACK WHITE PAPER.
When 360 degree feedback follows best practice guidelines and has actionable outcomes,
it is an excellent development tool for employees. However, it is also resource-intensive for
organizations, which can limit its widespread use.
Extending the type of in-depth review offered by the 360° process can help to embed a
feedback culture within organizations, supporting high achievers, developing leadership talent
and reassuring more junior staff that feedback offers an opportunity rather than a threat.
Technology is providing a route to a new kind of 360° feedback – self-service 360° – that
makes this level of expansion possible.
This paper will look at the changing face of 360 degree feedback and consider how extending and making
the model more flexible through technology can help organizations embed a feedback and leadership
development culture among all their employees.
QuestBack is a global leader in enterprise feedback management, already working with a number of leading
companies around the world to deliver technology for their 360° feedback programs.
Key findings

3. 3QUESTBACK 360°
FEEDBACK WHITE PAPER.
Poor managers are not only an obstacle to employee engagement they actually drive employee disengagement
with an estimated cost to US organizations of $355 billion annually in lost productivity (McKinsey, 2012).
The Harvard Business Review found nearly 60% of companies face leadership talent shortages which impede
performance (HBR 2010). Leadership development was found to the the top priority for 65% of respondents
in a recent McKinsey study (McKinsey 2012).
360 degree reviews are used by the overwhelming majority of Fortune 500 companies (Carruthers, 2003)
to improve leadership and capability with good reason. When done well, and used as a development tool
to help employees recognize their strengths and weaknesses and to work on them, the 360° feedback tool
is personal and powerful. It focuses on the individual – their behaviors, skills and competencies – from the
perspective of those around them, particularly their managers and peers. A good 360° feedback review will
include a follow-up roadmap for self-development, enabling the employee to revisit the feedback, respond
with changes and reflect on their progress.
360° feedback works best when some basic ground rules are respected. These can be seen as straightforward
best practice. The 360° feedback should have:
» The buy-in of all managers rather than being seen as driven
by the HR department
» Precise questions that can be translated into measurable actions
» Clear understanding of confidentiality for all parties
» A focus on strengths as well as weaknesses
» A clear follow-through plan of action that is revisited periodically
However, these requirements – ownership, time, commitment, follow-up – also mean that effective 360°
feedback can be demanding on an organization‘s resources. It is undoubtedly a time consuming process to
carry out, with high admin requirements as well as subsequent action planning. It also requires investment in
trainer coaching and ensuring that all the parties involved understand what they are doing and why.
The result is that this valuable feedback tool is generally restricted to the upper echelons of an organization,
principally senior management.
However, at a time when leading consultants are urging a greater emphasis on staff development at all levels
(McKinsey 2012), there is an argument that the benefits of 360° feedback should be realized more widely,
throughout organizations, rather than limited to those already at the top.
One model for extending the benefits of 360° is to use technology to reduce the overheads of the process
and create a less resource-intensive „self-service“ 360° option. We‘ll be exploring this idea further throughout
the white paper.
Introduction

4. 4QUESTBACK 360°
FEEDBACK WHITE PAPER.
One of the most commonly reported issues with 360 programs is ensuring follow-through – encouraging
individuals to take ownership of their review actions and change their own behavior (Chng, 2010). Too often,
the review itself is seen as both the beginning and the end of the feedback process with too little time, thought
or commitment given to the action plan and the behavioral change needed to see it through. Rather than
a one-off appraisal technique, 360° should be viewed as an ongoing process that requires continued
momentum from all involved to ensure that manageable action plans are delivered, fulfilled and revisited.
The failure to follow through can contribute to a more general failure of feedback culture in organizations.
Feedback is one of the top issues that comes up in employee surveys and is a particular area of anxiety for
junior and middle managers. If they are not well prepared in how to deal with feedback, how to interpret it,
how to act on it and in understanding how it is going to be used, they are likely to be nervous about it and
resist buy-in. Similarly, those who are giving feedback to others need to have a degree of comprehension and
buy-in around these topics so that the process is a constructive one rather than, at worst, a demotivating,
mud-slinging exercise.
When the principle and practice of constructive feedback is embedded in an organization there is an under-
lying acceptance that it offers opportunities rather than threats and that the outcomes benefit not just the
individual but also the wider organization.
The importance of extending feedback culture beyond the executive level and infusing it more widely is high-
lighted in a recent McKinsey report. It identified leadership development as one of the top priorities for HR
in the face of a looming talent crunch, the splintering of traditional corporate line positions and more flexible,
virtual working (McKinsey, 2012).
According to the Harvard Business Review, nearly 60% of companies are facing leadership talent shortages
that are impeding their performance. Another 31% expect a lack of leadership talent to impede their perfor-
mance in the next several years (HBR, 2010). Supporting high achievers means understanding and extending
staff development throughout the organization - as organizations engage in more complex, dynamic, and
creative work, they have to rely more and more on leadership from all levels: „leadership is not about position.
If that is true, then why do most leadership development programs focus on senior executives? We need
to expand our focus to figure out ways to efficiently and economically develop leaders throughout the
organization“ (HBR, 2010b).
360° – embedding the
feedback culture
»» Savvy seniorSavvy senior
executives willexecutives will
recognize thatrecognize that
managing the shiftmanaging the shift
currently undercurrently under
way is analogousway is analogous
to leading a majorto leading a major
change-manage-change-manage-
ment program andment program and
that managers,that managers,
at all levels, willat all levels, will
be the ones mostbe the ones most
keenly affected.keenly affected.
The first priorityThe first priority
for executives seek-
ing to lead their
organizations into
the new world of
work should be
helping their man-
agement teams
improve - or in
some cases develop
- abilities…«
MCKINSEY REPORT

5. 5QUESTBACK 360°
FEEDBACK WHITE PAPER.
But how are companies to expand 360° and, through that expansion, embed feedback culture in an organi-
zation when traditional 360° review is so resource-heavy? Introducing flexibility into the feedback system and
having the option of a „self-service“, less highly centralised route is one answer.
Self-service 360° is a commoditisation of the best of the 360° process that exploits technology to make it
efficient and effective for organizations to roll it out much more widely than a traditional 360 degree review and
make it accessible to all employees, if desired.
The difference between traditional 360° review and self-service 360°, is that the latter is much more scalable.
Controlled by the organization‘s HQ but distributed online at a departmental level or localized, it offers customer-
specific and relevant implementations combined with flexible location and role focus. It is easy to set up and
provides a homogenous process for the whole enterprise.
It can all be embedded into an enterprise HR feedback strategy aimed at reducing churn, supporting high
achievers, identifying poor performance and promoting engagement. Importantly, as constructive feedback
culture becomes embedded, more junior staff learn how to appreciate the opportunities it offers rather than
fearing criticism. The easy, rolling nature of the review enables them to monitor their progress over time as
they seek to work on their weaknesses and improve their performance.
Of course, developing self-service 360° within an organization does not mean abandoning the existing high-
level approach, which is fully administered, drives corporate incentive programs and requires a high degree of
consultancy. There will always be a place for this gold standard feedback mechanism.
The future of 360° -
flexibility

6. 6QUESTBACK 360°
FEEDBACK WHITE PAPER.
QuestBack offers highly customizable services for HR designed to assess and develop employees from
top managers and executives to general staff. For example, the QuestBack 360° Leadership Compass is a
complete and flexible tool, used by some of the world’s biggest brands, that helps organizations measure and
maximize the development of their leaders using 360° feedback.
QuestBack has discovered that the benefits of developing staff in this way are significant from an ROI point
of view, ranging from reducing management turnover and improving customer retention to reducing staff
absence due to sickness.
3 TYPICAL USE CASES
Here are three ways our customers use QuestBack 360° Leadership Compass to enhance leadership development.
QuestBack’s 360°
experience
Deutsche Lufthansa AG
Global aviation group Deutsche Lufthansa AG replaced their paper-
based 360° employee feedback procedures with an online system based
on QuestBack technology. The entire survey process is now automated with
the questionnaires designed flexibly, resulting in a considerable reduction in
costs. The adaptive structure of the questionnaire offers a choice of modules
that allows users to provide more details on a topic and provides the
feedback recipient with the option of defining the relevant areas of his
or her feedback. This way, maximum information is gained
with minimum processing time. The platform allows
managers to prepare their feedback process themselves in just a
few steps, monitor the response and download their personal final
report. The good response rate shows that feedback recipients and
feedback sup-pliers trust the online system. A statistical check of
the anonymized results revealed that the quality of the collected
information meets the high expectations of Lufthansa’s
employees.
»» A great success…A great success…
has helped boosthas helped boost
innovationsinnovations
successfully«successfully«
DEUTSCHE LUFTHANSA AG‘SDEUTSCHE LUFTHANSA AG‘S
HEAD OF MANAGER TRAININGHEAD OF MANAGER TRAINING
1. 2. 3.
INFORMAL AD-HOC
OPINION GATHERING
Situation: A forward-thinking manager in
a new role wants to conduct a quick ad-
hoc review of team morale, expectations
and goals across his team, his peers and
his manager.
Solution: The manager uses the intuitive
survey setup wizard to quickly create a pro-
ject, upload a standardized questionnaire,
define respondents and distribute a survey,
all in just a few clicks.
IDENTIFICATION OF
EMPLOYEE-SPECIFIC TRAINING
OR DEVELOPMENT ISSUES
Situation: An HR director wants to set up a review
among account executives, their line managers and
customers to map customer satisfaction against
managerial performance, identify gaps in leadership
development or training, and define corrective actions.
Solution: The HR director sets up a centrally-
controlled review using a customized questionnaire.
The system automates the rollout of the survey,
collates the results, and presents them and proposed
next steps in an attractive, easy-to-interpret and
high-impact way.
AN ENTERPRISE-WIDE 360°
LEADERSHIP SURVEY
Situation: The Executive Board of a large
enterprise wants to run an anonymous annual
audit of senior managers’ performance, and
align the results against specific KPIs.
Solution: QuestBack 360° Leadership Compass
enables the HR department to develop an
effective audit questionnaire, distribute it simul-
taneously in multiple languages to hundreds
of managers around the world, and generate
clear, attractive reports, customized to the
priorities of specific stakeholder groups.

7. 7QUESTBACK 360°
FEEDBACK WHITE PAPER.
QuestBack‘s 360° solutions recognize that different customers have different needs. That‘s why QuestBack
offers both the centralized and the self-service versions of 360° programs. The traditional high-level, adminis-
tered 360° review is ideal for senior managers, while self-service 360° is superbly scalable.
With QuestBack‘s 360° Leadership Compass, organizations are enabled to discover, assess and develop their
managers’ leadership capabilities in a transparent and objective fashion. All participants benefit:
QuestBack – the flexible,
scalable 360° feedback solution
Leaders enjoy greater involvement in their performance reviews and accelerate their career
progression through clear identification of existing strengths and opportunities for improvement.
HR departments can conduct leadership reviews easily, quickly and more frequently, saving
time and money while simultaneously increasing the value of the HR function.
Senior managers are empowered to maximize business impact and human capital ROI
by aligning leadership more closely with strategy, measuring development of leadership
capabilities over time and correcting or eliminating poor leadership.
Organizations can enhance their image as forward-thinking employers by demonstrating
their commitment to leadership development.
Having the flexibility to move between 90 and 360-degree feedback – which can be used at all organization
levels, from board to staff - provides a more realistic, balanced picture of qualitative performance (the “how”),
effectively complementing the traditional quantitative measures of performance (the “what“). It is a power-
ful catalyst for change and an excellent personal development tool – the process encourages individual
ownership, increases self-awareness and presents the need for change (where it exists) in a compelling way.
It achieves an alignment of behaviors with the organization’s values and preferred leadership style and can
be the catalyst for improved teamwork
THE DIFFERENCE IN QUESTBACK‘S FLEXIBLE 360° SOLUTIONS LIES IN ITS
» Flexibility: 90-180-270-360° feedback
» Ease of administration and use
» Anonymity options
» Enterprise readiness
» Data security
» Multi-language facilities
» Tailor-made nature
» Scalability
» Links to corporate strategy, ROIs and KPIs
Having one online tool for all surveys and all stakeholders in the company offers scalability, cost savings,
synergies and increased efficiency.
SOURCES
ASHFORD, S, DERUE, S (2010), FIVE STEPS
TO ADDRESSING THE LEADERSHIP TALENT
SHORTAGE. HARVARD BUSINESS REVIEW
(2 JUNE 2010)
http://blogs.hbr.org/2010/06/5-steps-to-
addressing-the-lead/
ASHFORD, S, DERUE, S (2010B), LEADER-
SHIP — IT’S (MUCH) MORE THAN POSITION.
HARVARD BUSINESS REVIEW (29 APRIL 2010)
http://blogs.hbr.org/2010/04/leadership-its-
much-more-than/
CARRUTHERS, F (2003). NOTHING BUT THE
TRUTH. AUSTRALIAN FINANCIAL REVIEW
(NOVEMBER 14 2010): 78.
CHNG, J (2010) ORIGINAL INSIGHT: 360-DE-
GREE FEEDBACK: TACKLING THE THREE
BIGGEST CHALLENGES (ETS PLC: SURREY)
LUND S, MANYIKA J, RAMASWAMY S, (2012)
PREPARING FOR A NEW ERA OF WORK.
MCKINSEY QUARTERLY (NOVEMBER 2012)

8. 8QUESTBACK 360°
FEEDBACK WHITE PAPER.
Enterprise-ready: Integrated with
QuestBack’s proven, enterprise-
class EFS and Data Voyager
feedback solutions, enabling
alignment with overall corporate
feedback strategy.
Complete: A single, complete,
scalable solution for leadership
reviews and surveys between any
combination of stakeholders, ena-
bling greater efficiency and lower
costs compared with running
separate systems.
Flexible: Usable as a centralized
solution, or an intuitive self-service
tool, enabling standardized or
bespoke ad hoc reviews between
any combination of stakeholders.
Anonymous: Allows respondents
to express honest opinions, and
helps employees/managers treat
feedback more objectively.
Secure: Employee data held
in state-of-the-art facilities in
Germany, eliminating potential ex-
posure to foreign data regulations
e.g. US Patriot Act.
Customizable: Use built-in ques-
tionnaire templates or create your
own, and conduct surveys simul-
taneously in multiple languages.
Reasons to choose
QuestBack6
QuestBack GmbH
Gustav-Heinemann-Ufer 72a
50968 Köln
Tel +49 221 271690
sales@questback.de
W W W . Q U E S T B A C K . D E
COMPANY PROFILE
QUESTBACK IS A GLOBAL LEADER IN ENTERPRISE FEEDBACK MANAGEMENT, MARKET RESEARCH SOLUTIONS,
SOCIAL CRM, CUSTOMER EXPERIENCE MANAGEMENT, AND HR MANAGEMENT. THE COMPANY‘S SOFTWARE
SOLUTIONS ENABLE ORGANIZATIONS TO GAIN ACTIONABLE INSIGHTS AND BUILD STRONGER RELATIONSHIPS WITH
CUSTOMERS AND EMPLOYEES.
FOUNDED IN 2000, QUESTBACK IS HEADQUARTERED IN OSLO, NORWAY AND PRIVATELY HELD WITH 17 OFFICES
WORLDWIDE. MORE THAN 4,000 GLOBAL CUSTOMERS RELY ON QUESTBACK – INCLUDING VOLVO, ERNST & YOUNG,
COCA-COLA AND GENERAL MILLS.