Mistakes to Avoid with a 360-Degree Review

360-degree feedback is a powerful tool for leadership development, performance appraisal, and organizational growth. However, many organizations make critical mistakes that undermine its effectiveness, and because of this, some organizations avoid using 360-degree reviews altogether. This article highlights five common mistakes organizations make when implementing 360-degree reviews, backed by research, and provides recommendations for overcoming them. Here are the five mistakes that we will be exploring: 1) not having a clear purpose for the 360-review; 2) selecting the wrong raters; 3) not training evaluators on how to give proper feedback; 4) lack of follow-through on development plans; and 5) using the 360-degree evaluation as a stand-alone initiative.

One of the most significant mistakes organizations make is implementing 360-degree reviews without a well-defined purpose. Research by Atwater and Waldman (1998) indicates that 360-degree feedback is most effective when tied to leadership development rather than performance appraisal. Without a clear objective, participants may resist feedback, and the process may lack credibility. We recommend that organizations should establish a clear goal for the 360-degree review process—whether for leadership development, team effectiveness, or performance improvement—and communicate this purpose to all stakeholders. The 360-degree solution selected should also align fully with this purpose for maximum impact.

Selecting the wrong raters can also compromise the quality and reliability of feedback. According to a study by Nowack (2009), bias in rater selection—such as choosing only friendly colleagues—can distort results and reduce their usefulness. If raters lack sufficient interaction with the participant, their feedback may be superficial or inaccurate. It is important that raters include a balanced mix of supervisors, peers, subordinates, and even external stakeholders who have meaningful interactions with the individual.

Many organizations also assume that employees naturally know how to give and receive feedback, but research shows otherwise. London and Smither (2002) found that untrained raters often struggle to provide actionable feedback, and unprepared recipients may react defensively, reducing the review's effectiveness. To address this gap, organizations should conduct training sessions for both raters and recipients. Raters should learn how to provide specific, constructive, and balanced feedback, while recipients should be coached on interpreting feedback and developing an action plan.

Another common pitfall is treating 360-degree feedback as a one-time event rather than an ongoing development tool. Studies, such as those by Smither, London, and Reilly (2005), show that without structured follow-up, behavioural change is unlikely, and participants may become disengaged from the process. Organizations should integrate post-feedback coaching, goal setting, and progress tracking into talent development programs. Managers should support employees in creating actionable development plans and monitor progress over time.

In addition, some organizations use 360-degree feedback in isolation, without aligning it with broader performance management systems. Research by Bracken and Rose (2011) highlights that when feedback is disconnected from organizational goals, it fails to drive meaningful change. You should align 360-degree reviews with leadership development initiatives, performance management processes, and organizational culture programs to ensure sustained impact.

360-degree feedback can be a transformative tool when implemented correctly. Avoiding common mistakes—such as lack of clear purpose, poor rater selection, inadequate feedback training, failure to follow through on development plans, and using feedback in isolation—will enhance its effectiveness. By addressing these challenges with evidence-based solutions, organizations can create a more transparent, developmental, and impactful feedback culture.

At Learning Impact, we are excited by the amazing impact that 360-degree reviews can have for you and your organization, so please reach out to us on +234 818 195 6161 (WhatsApp Chat Only) to learn more about our 360-degree feedback solutions and how we can support you.