Invention

360-Degree Review

Peer assessments outperformed psychologists at predicting which officers would survive combat.

Germany · 1930
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Around 1930, the German military psychologist Johann Baptist Rieffert developed a selection methodology for officer candidates in the Reichswehr.1 His system gathered evaluations from superiors, peers, and subordinates simultaneously, an arrangement that had no precedent in personnel assessment. The process included a leaderless group discussion called the Rundgespräch, in which candidates were observed by officers, psychiatrists, and psychologists at the same time.

What emerged from the data surprised the evaluators. Peer assessments predicted battlefield performance more accurately than intelligence tests, personality inventories, or interviews conducted by trained psychiatrists.2 The people who knew a candidate from shared daily experience turned out to be better judges of future conduct than any credentialed expert.

The first documented business application came in the 1950s at the Esso Research and Engineering Company, a predecessor of ExxonMobil. Esso launched a program called "rate your supervisor," which asked subordinates to evaluate the strengths and weaknesses of their managers' leadership.3 The concept spread slowly through the corporate world during the 1960s and 1970s, with Bank of America, Disney, and Bell Labs running early experiments.

90%
Estimated share of Fortune 500 companies using some form of multi-rater feedback by the early 2000s

General Electric accelerated adoption in the 1980s, when CEO Jack Welch used multi-rater feedback as part of his performance management system.4 By the early 2000s, an estimated ninety percent of Fortune 500 companies were using some form of 360-degree feedback.5

In 2015, a RAND Corporation study commissioned by the U.S. Department of Defense concluded that 360-degree assessments should not be incorporated into the military's formal officer evaluation system, citing concerns about validity, cultural resistance, and the risk of popularity contests undermining military decision-making.6 The tool that began as a way to predict who would survive combat had become, in many organizations, a mechanism whose primary value lay in development rather than judgment.

1930
Johann Baptist Rieffert develops multi-rater officer selection for the German Reichswehr.
1950s
Esso Research and Engineering Company conducts one of the first business applications of multi-source feedback.
1980s
General Electric integrates 360-degree feedback into its performance management system under Jack Welch.
2015
A RAND Corporation study advises the U.S. military against using 360-degree assessments for formal evaluations.
1 Wolfgang Schönpflug, "Johann Baptist Rieffert: Gelehrter im Nationalsozialismus," in Theo Herrmann and Wlodek Zeidler (eds.), Psychologen in autoritären Systemen (Peter Lang, 2012).
2 L. von Renthe-Fink, "Von der Heerespsychotechnik zur Wehrmachtspsychologie," in Deutsche Wehrmachtspsychologie 1914-1945 (Munich, 1985), 3-182.
3 EBSCO Research Starters, "360-Degree Feedback," Business and Management.
4 John W. Fleenor and Jeffrey M. Prince, Using 360-Degree Feedback in Organizations (Center for Creative Leadership, 1997).
5 3D Group, Current Practices in 360-Degree Feedback (2013 survey of 211 U.S. and Canadian companies).
6 Chaitra M. Hardison et al., 360-Degree Assessments: Are They the Right Tool for the U.S. Military? (Santa Monica, CA: RAND Corporation, 2015).
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