Performance Management
Appraisals are getting harder! People work flexibly in projects across the organisation - everyone is busy - appraisers see less of their people. So, when appraisal comes around, managers are inevitably less well-informed than 10 years ago. A particular problem for appraisers seems to be how results were achieved; the person's relationships, approach and values. What was achieved can be relatively easy to judge - results are usually much more visible.
Many organisations have considered supporting appraisers with 360 Feedback about their appraisees. They see that 360 Feedback could, in theory, produce better informed, more structured appraisals. However, deterred by concerns about rigged feedback, confidentiality, and appraisers' skills very few organisations have actually used 360 Feedback in appraisal.
An exception is Wyeth Consumer Health (WCH) - the makers of Anadin† pain relief. 360 Feedback in appraisal has been a huge success for them. An anonymous survey of appraisers and appraisees found…
- Most people said 360 Feedback made it easier to discuss performance both in terms of the company's values and the job.
- 68% of people described their 360 Feedback as "a fair assessment of my performance".
- Almost everyone (87%) said they gave honest feedback to others.
- 80% of appraisees and appraisers felt 360 Feedback had enhanced their annual appraisal.
In what way has 360 Feedback contributed to WCH's appraisals? For appraisers there seem to have been two benefits: information and support. Information in terms of how a person has acted in relation to the company's values - appraisers have relatively little concrete information about that because values are somewhat intangible. And, support in terms of others (those who completed questionnaires) backing for the appraiser's view of the individual. Appraisers were able to say "see it's not just me who thinks it".
Those are great results for WCH. Organisations often struggle to make appraisal better; they change the appraisal process time and time again. But, very few changes to appraisal are so well received and make such a positive impact as WCH's.
What's WCH's secret? Don Sibley, their Training and Development Manager, highlights three things…
- Good 360 Feedback design. In particular, clear questions that provide pertinent, unambiguous feedback. And, a simple, visual feedback report that everyone finds helpful. Don is confident that poor design creates both ambiguities that fuel arguments and complexity that obstructs productive discussions.
- Intelligent implementation. WCH worked hard at developing their 360 Feedback process, and then introduced it carefully. Senior managers helped shape the questionnaire, and then piloted 360 Feedback by getting feedback themselves. Taking things step-by-step enabled several improvements - WCH discovered what worked for them. But, perhaps more importantly, it created understanding and ownership of 360 Feedback across the business before was used in appraisal.
- Clear personal objectives. If personal objectives are clear, then appraisal is straightforward, the appraisee did or didn't deliver. Clear objectives remove doubt and debate from appraisal rating decisions, and crucially they remove 360 Feedback results from those key decisions. Don says clear objectives make the role of 360 Feedback straightforward - it's about understanding performance not determining appraisal ratings. It's not about determining appraisal ratings or pay.
More information
For an introduction to Wyeth see www.wyeth.co.uk. And, if your appraisal process is giving you a few headaches try www.anadin.co.uk!
Acknowledgement: We'd like to thank WCH's senior management, and particular Don Sibley, for their contributions to this short case study.
† Anadin is a registered trade mark of Whitehall Laboratories trading as Wyeth Consumer Healthcare in the UK.