Effective 360-Degree Feedback that Nurtures Growth and Leadership

Welcome to SMB Matters, I am Lynne Vu, a Lead Organizational Development Consultant at TriNet. This podcast takes a close look at the latest news and trends on a variety of topics related to running a successful small and medium sized business. Today, I’ll be talking about 360-degree feedback.

A 360-degree feedback process sounds like a great way to help people grow. You collect input from the right people: managers, teammates, direct reports, maybe even customers—and use it to give employees a full picture of how they’re doing. It’s a great idea, like putting ingredients into a recipe where each flavor adds something valuable.

But here’s the thing. If you don’t have the right support system in place, like a solid process, a healthy culture, a strong filter for separating truth from snark, and most importantly…people trained to handle tough conversations—that delicious dish can fall apart fast. And when it does, people get hurt, morale declines, and top performers leave.

Launching a 360-degree feedback program without proper planning is like asking someone to bake a pie by handing them flour and butter, a bowl of fruit, and no recipe. They know it's supposed to become something meaningful—but without guidance, tools, or support, they’re left staring at the ingredients, confused, overwhelmed, and not sure what to do next.

Just like making a great pie, a successful 360 program requires the right preparation, environment, and follow-through. Otherwise, you risk serving up more stress than insight.

When 360-Degree feedback works well:

• It provides a broader perspective. 360-degree feedback brings in multiple viewpoints, creating a fuller, more balanced picture. It uncovers insights into behavior, communication, and collaboration that might otherwise be missed.

• Increased self-awareness and leadership development. When administered correctly, 360 feedback helps people see themselves more clearly. Someone who thinks they’re “direct” might learn they come off as “abrasive.” A confident manager might be viewed as unapproachable or controlling. These disconnects are common, but without feedback, they can stay hidden. For leaders especially, that kind of awareness is critical. Blind spots at the top can lead to frustration, missed opportunities, and lost talent.

• Fosters a culture of feedback and performance management. When done well, a 360 program can normalize feedback and make it less intimidating. It tells employees, “We’re all human. Growth is expected, and no one’s doing it alone.

When 360 Feedback goes wrong:

• Unfiltered honesty can be hurtful. Without significant and careful planning, 360 feedback can go sideways fast. I’ve seen people open reports only to read that coworkers think they’re “arrogant,” “bad at communication,” or just plain “annoying.” Even if the intent is to be helpful or constructive, without a skilled facilitator to walk them through it, blunt truth without guidance can hit hard. I’ve seen tears. I’ve seen angry messages. It’s more common than you’d think. When people feel like they can say anything without accountability, the feedback can turn snarky or vague instead of being thoughtful and useful. Without context or care, feedback stops feeling helpful and starts feeling like a hit-and-run.

• Office politics. Feedback can also be influenced by popularity, grudges, or competition. If someone feels threatened by a high-performing colleague, they might use the process to undermine that colleague. Without checks and balances, it becomes more about relationships than real performance or results.

• No follow up or action plan. Even the best feedback falls flat without a clear and actionable next step. It’s like getting a diagnosis with no treatment plan. Without coaching, conversation, or an action plan, people are left to guess… or just give up. Most will default to what they’ve always done, because there’s no structure to support change. Without follow-up, even good feedback can do more harm than good.

When you should NOT do 360 feedback:

Don’t launch a 360-degree feedback program until your organization is truly ready to support it—emotionally, professionally, and logistically. That means having trained facilitators, strong psychological safety, a culture that values growth, and a clear plan to help people process and act on what they hear.

I’ve seen well-meaning programs backfire. I’ve seen leaders scrambling to repair broken trust and low morale. If you don’t have the right resources—like trained HR support, coaching time, and leaders skilled in feedback conversations—it’s better to start small or hold off entirely. Feedback is a tool, not a weapon. The difference is in how you use it.

How do you know if you’re ready?

Used wisely, feedback is one of the most powerful tools for development. Used carelessly, it’s a recipe for drama, disengagement, and distrust. So… before you dive in, ask:

• Do we have a detailed plan to help employees interpret and act on the feedback?

• Is our environment psychologically safe enough for honest conversations? And how do we know?

• Have we built a support system—emotionally and professionally—for people going through the process?

If the answer is “no” to any of these, take a step back. Build the foundation first or put tools in place to create a culture of ongoing, safe, and constructive feedback.

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Disclaimer:

This podcast is for educational purposes only. With decades of experience supporting small and medium-size businesses, TriNet has unique insight into HR best practices for businesses. TriNet does not provide legal, tax or accounting advice. The materials in this podcast and the options and opinions expressed herein may not apply to your company or scenario, so you should consult with your own advisors on how best to proceed. Reproduction in part or in whole is not permitted without express written authorization from TriNet.