360 Degree Feedback as an Intervention

 

Genesis of 360-degree feedback in GE

 

Jack Welsh implemented 360-degree feedback in GE when he became the CEO. When he took over from the previous CEO in the early 1980s, GE had numerous problems such as:

 

v     Over-staffing,

v     Loss in its market presence in US,

v     No presence outside and

v     Declining margins.

 

Jack Welsh, being groomed inside the system, knew the internal politics, code of conduct and the financial irregularities happening. He used some available literature and theories based on understanding organizations and large-scale emphasis on culture building. Leadership began to get redefined in GE. What began to be talked about, as a credo inside GE was that leadership had to start focusing on growth and investment and start defocusing from managing people.

Need to have 360-degree feedback

 

The thinking behind extending 360-degree to performance and leadership style reviews is that most senior employees today work with a wide range of people and it is becoming difficult and complex for a single superior to accurately assess individual contribution. But this view of employee behavior is a waste of money and effort if it does not lead to improved outcomes.

 

Consequently, companies have begun to link individual behavior to company goals. This is where 360-degree feedback is very relevant. If there is a premium on teamwork or customer responsiveness, 360-degree feedback allows team members to comment directly on an employee’s success in meeting these goals.

The GE success factor

 

If one looks at GE, the reasons for which it has been perceived as the most admired company three years in a row are two of its outstanding traits:

 

v     Ability to innovate

v     Ability to manage sustained growth year after year almost to the tune of 13%-15% growth every year, with the large amount of cash profit

 

GE has been able to sustain this because of the leadership values that exist inside the company.