360-degree feedback

360-degree feedback takes its name from the full circle of people asked for their view. In a typical process, the leader and a selection of raters answer a questionnaire about the leader’s behaviours, usually scoring them on a scale and adding written comments. Responses are grouped so that no individual answer can be identified, and the leader receives a report comparing how they see themselves with how others see them. A debrief with a trained facilitator helps them decide what to work on.

The value lies in the gap between self-view and others’ view. For many leaders, it is the first direct information they have had about how they come across.

For a family successor, the method meets two particular problems. The first is candour. Raters are describing the child of the owner, and possibly their own future owner. They may soften their view out of loyalty or caution, or wonder whether the report will reach the parent. The second is anonymity. In a small senior team, with a handful of direct reports and one or two board members, scores and comments can often be traced by elimination. The result can be a report that is politely positive and too vague to act on.

The Journal article How does 360-degree feedback work for a family successor? covers these issues and the alternatives in depth.

360-degree feedback or stakeholder interviews?

A 360 is a structured survey. A stakeholder interview is a confidential one-to-one conversation with someone outside the company. Interviews allow follow-up questions and specific examples, and can protect people better in small teams. Some families use both.

Why it matters for preparing a successor

Honest feedback is the starting point for any serious preparation. Whatever method is used, the questions that matter are who commissioned it, who sees the results, and whether the successor receives something specific enough to practise on. The article on leadership assessments for successors looks at related tools.