Unlocking Hidden Potential: Boosting and Strengthening Leadership With 360-Degree Development Tools

In light of an aging workforce and the accelerated retirements prompted by the COVID pandemic in 2020, the urgency for organizations to prioritize succession planning and enhance their bench strength has become increasingly critical. For some, this challenge has escalated to an emergency or existential threat. Many organizations have responded by revamping their performance management systems, which often lack the necessary granularity for effective planning.

Our team has observed a growing trend in the adoption and continued use of 360-degree development tools to strengthen organizational leadership capabilities. Why are many companies turning to 360-degree assessments as a means to fortify their leadership teams? Since they recognize that comprehensive, multi-faceted human capital data, coupled with actionable plans, is vital for the organization’s long-term viability.

Effective Strategies for Enhancing Bench Strength Using 360-Degree Assessments:

Well-rounded Assessment:

A well-designed 360-degree system can provide answers to critical questions such as: What is the average level of strategic insight within the organization? How adept are leaders at developing talent versus driving action? Are leaders effectively delegating to empower others and create space for themselves? The strength of a 360-degree system lies in its ability to delve into competency or behavior-level data, offering insights into both strengths and areas for development. This allows leaders to make informed decisions about where to leverage existing strengths and where focused development is needed.

Saving Performance Records:

While 360-degree assessments should not be used for compensation discussions, organizations can benefit from maintaining updated, quantitative scorecards to identify and nurture talent. These assessments provide far much greater depth than traditional performance management programs, offering detailed competency scores and thematic responses that help talent leaders shift focus and make adjustments year-over-year. Additionally, 360-degree data can offer valuable insights for succession planning, helping to determine whether talent exists within the organization, can be developed within the required timeframe, or needs to be sourced externally.

Uncovering Hidden Potential:

Organizations often promote individuals who are high-performing and visible, whether due to their role or personality (extraversion). This can result in overlooking hidden talents. A well-structured 360-degree assessment, encompassing a diverse cross-section of employees, can reveal significant, under-recognized skills. In many 360-degree review meetings, surprises often arise not from effectively identifying underperformers, but from discovering unexpected standout performers. By illuminating these hidden talents, 360-degree assessments help allocate resources effectively towards their development.

Consequently, the strategic use of 360-degree development tools offers a nuanced and comprehensive approach to building leadership capacity and growing management potential, ensuring that organizations are well-prepared to face future challenges.