360 Feedback – The Most Important Questions Answered

This guide answers the most important questions about 360 feedback clearly and honestly. Based on over 25 years of hands-on experience, it offers practical insights to help organisations make the right decision about whether 360 feedback is the right solution for them.

Purpose and application

What is 360 feedback used for?

360 degree feedback is most commonly used for two key purposes:

• For individual development: Supporting individuals to improve self-awareness, recognise strengths, identify development opportunities, and encourage behavioural growth
• In support of performance decision-making: Informing processes such as appraisals, promotions, and succession planning

It can also support broader initiatives like talent management, team development, and cultural change.

Although terms like 360 feedback, 360 appraisal, 360 review, and 360 assessment are often used interchangeably, the intent behind the process is what really matters.

How do organisations typically use 360 feedback?

Based on Lumus360’s work with more than 500 organisations in the last five years:

• 94% use 360 for development, including:
• Personal development (47%)
• Leadership or management programmes (28%)
• Executive coaching (12%)
• Talent management (5%)
• Team development (2%)
• 6% use it for performance measurement

Even when primarily used for development, 360 feedback results often inform wider performance conversations.

Is 360 feedback suitable for performance evaluation?

Yes, but it must be carefully managed. Common challenges include:

• Risk of bias or attempts to influence results
• Concerns about fairness and consistency
• Overfocus on weaknesses
• Feedback being rejected if not well presented

When used for performance purposes, transparency, clearly defined criteria, and strong governance are critical for success.

Benefits and risks

What are the benefits of 360 feedback?

• For individuals:
• Greater self-awareness
• Identification of blind spots
• Clarity on perceived strengths and weaknesses
• Encouragement of behavioural change
• More mature feedback culture
• Increased accountability
• Focus on how work is done, not just what is achieved
• For organisations:
• A more open feedback culture
• Honest, development-focused conversations
• Better alignment between behaviours and performance outcomes

Are there any disadvantages?

If poorly managed, 360 feedback can:

• Be used to pursue personal agendas
• Create confusion through vague or subjective responses
• Generate low-quality or unbalanced feedback
• Cause disengagement if results feel unfair or unclear

These risks can be significantly reduced through good communication, thoughtful question design, and skilled facilitation.

Why do some 360 feedback initiatives fail?

Common causes of failure include:

• Lack of leadership support
• Weak internal communication
• No follow-up or development planning

Success requires strong implementation, visible leadership buy-in, and support beyond the report

Implementation considerations

How much does 360 feedback cost?

Costs vary depending on provider, support level and any additional services provided. For accurate comparisons, always specify your full requirements and request a total cost per participant to enable a like for like comparison.

How often should 360 feedback be used?

A typical cycle is every 12 to 18 months. This allows time for reflection, behavioural change, and tracking progress through comparative reports.