Case Study
360?! – Performance Management for Future
A fast-growing tech startup lacked a formal performance management system, resulting in inconsistent feedback for employees and friction around expectations of performance. This 12-week implementation project of a structured 360-degree feedback system improved performance transparency, clarified career progression, and enabled data-driven promotion decisions.
Challenge
- Prior to this project, the organisation lacked a formal performance management process. Employees were frustrated due to uncertainty about performance, career progression, and development opportunities.
- Additionally, the absence of active performance management resulted in promotion inefficiencies across teams.
- Quality of feedback was inconsistent and depended on the manager's skill. Previous efforts of establishing a culture of continuous feedback did not bear fruit.
- Ultimately, managers were challenged to retain productive employees; and had little arguments to structurally manage wanted attrition in their teams.
Strategy
1. Defining competencies & expectations
- Workshops during a three-week sprint with department leaders defined concise competencies for all roles. These were aligned to company values and structured performance expectations in their teams.
2. Implementing a 360-degree feedback system
- During a two-day design sprint, a structured feedback process was designed by diverse representatives across teams and seniorities.
- Feedback collection tool was launched, and 360-degree processes for the collection of upward, downward, and peer feedback were set up.
- A pilot group tested the feedback survey to refine design and effectiveness before launching it to the entire company.
3. Training & adoption
- Company-wide launch sessions educated employees on performance ratings, career paths, and the timing of feedback collection.
- Leadership training in parallel covered rating assignments, feedback delivery, and the requirements to manager documentation.
4. Calibration & review
- Calibration meetings aligned ratings and promotion decisions. The leadership team overlooked the translation of feedback outcomes into staffing decisions, salary adjustments, and promotions.
Results
- Employees gained clarity on their current performance, as well as their role expectations, career paths, and development areas.
- Managers achieved transparency on promotion and salary increase criteria, backed by a structured process for promotions and salary adjustments.
- The newly created performance review cycle was thoughtfully integrated into the company calendar to thin out workload peaks.
Impact
A company-wide performance review process and tool was introduced, keeping feedback collection light and workload-friendly. All employees received feedback on their current performance. This structured approach also provided the foundation for regular feedback assessments over time, structured employee development, and a culture of continuous feedback.
Role clarity before reviews – employees need a clear understanding of role expectations before any performance evaluation can be effective.
Lessons learned
Managers drive performance culture – qualitative feedback, structured coaching and personal development reinforce strong employees to be as effective as possible.
Leadership needs clear expectations and buy-in to effectively support and defend the process, as this cannot be centrally enforced.