720 Degree Review: Better results, more profit
by Richard D. Galbreath, SPHR
President, Performance Growth Partners Inc.
rick@performtogrow.com
(309) 664-7741
There are two requirements to gain strategic advantage:
1. A demonstrated sense of urgency to improve; and, more importantly,
2. The ability to capitalize on opportunities your competitors take for granted.
Many businesses have a dynamic sense of urgency. They are committed to improving processes to better serve customers. These firms are on the path to steady, long-term growth and profitability.
Gaining true dominance, however, requires uncovering opportunities that most would not recognize as significant. The simplest of ideas can catapult a business over its competitors.
Look, for example, at the bottled water industry. While bottled water has been around for a very long time, someone in the late sixties said “Why don’t we bottle water in consumer-sized packages and sell it so that people can drink it wherever they are?” I am sure that person was laughed at. That silly idea now results in the sale of 126 billion liters of water annually.
It isn’t necessary to create an entirely new product to gain market dominance. What you must do is understand what customers want and provide it to them before your competitors do. Opportunities are all around us to look for the overlooked.
Customer Service
Customer service is today’s buzzword. We do training, customer satisfaction surveys and many other things that make small improvements to our current way of doing business. All of this is great – but it’s not enough.
To make real gains in market share, your customers need to be heard in the performance evaluations of your managers. If we are serious about wanting to serve our customers, we must increase personal sensitivity to their wants, needs and perceptions. Through the 720 degree performance review, the customer’s voice is clearly heard – and managers begin to truly listen.
While both the traditional evaluation and 720 degree process focus on individual performance development, the 720 degree program ensures that performance goals are aligned with customer’s true expectations. Knowing that customers will have powerful input into performance appraisal reinforces the need to see them as more than a daily distraction from duties. The result is a much deeper appreciation for the customer, a better working relationship, and better personal and organizational outcomes.
The 720 degree review also differs from traditional performance management initiatives in that it ensures that all participants have the training needed to make outcomes meaningful. Customers, internal evaluators, vendors and the executive being evaluated are coached on the purpose, process and needed outcomes before beginning. The goal is to tell the balanced truth, backed by relevant example.
The Process
The 720 degree review starts with a review of the leader’s contributions to the business, competences and other factors. Employees and vendors who interact with the executive are interviewed to determine strengths and weakness, opportunities and threats to the organization and to the executive under review. The interview includes both face-to-face and form-based information gathering.
Next, major customers are identified and their representatives asked to be part of the review. After program training, the 720 degree service provider, an objective third party, interviews the customer to determine the quality of the relationship with the executive, where they see opportunities to be better served, how interpersonal skills might better fit the client’s culture, and how goals can be better aligned to enhance business results.
All internal and external input is compiled, analyzed and presented to the executive. This phase of the process is called the “crucible.” All perceptions, both good and bad, are openly shared with the executive. The results can be both surprising and enlightening. The provider coaches the executive before and after the crucible on how the information should be used. Nonetheless, some of honest, fact based information can be difficult to deal with – feelings can be hurt. This is often where true growth begins.
Results
The executive, with support from the 720 degree service provider, develops measurable goals and a detailed action plan to make changes.
The results of the action plan, supported by ongoing feedback from the original evaluators, are included in the executive’s performance appraisal. The executive receives ongoing support and coaching from the 720 degree service provider as the action plan unfolds.
The link between executive performance, customer service and ability to generate revenue is taken for granted today. The 720 degree process takes this overlooked opportunity and turns it into greater customer loyalty and more organizational profit.
Rick Galbreath, SPHR, is president and founder of Performance Growth Partners Inc., a full service organizational improvement firm specializing in HR audits, corporate outplacement services, customer service assessments, customer service training, supervisory training, employee surveys, employee handbooks, teambuilding programs and team training, on-call and project-based HR consulting services, outsourced HR services, employee retention programs, performance improvement programs, executive coaching, manufacturing process and operations improvement consulting, training and programs, safety assessments, safety training, strategic planning, employee retention program, performance improvement programs, interim executive placement, conference speaking, keynote addresses, business turnaround consulting and a wide range of other services. Contact Rick toll-free at (877) 739-4747 or e-mail him at rick@performtogrow.com.
© 2007 Performance Growth Partners Inc.
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