360° feedback can be a valuable tool for the development of C-level executives. However, on its own, it cannot objectively evaluate their performance or their actual contribution to the company. A high-quality leadership assessment requires a combination of feedback from others, achieved results, observable behaviour, the context of the role and clearly defined expectations.
Nevertheless, many companies continue to use 360° feedback as the primary tool for evaluating CEOs, CFOs, Sales Directors and other members of senior management.
The executive is assessed by their manager, peers, direct reports and, in some cases, customers. The aim is to provide a comprehensive picture of their leadership.
The problem is not that 360° feedback has no value. The problem arises when a company begins to treat it as an objective measure of a leader’s actual performance.
What Does 360° Feedback Actually Measure?
A well-designed 360° feedback process can reveal:
- how others perceive the executive’s behaviour,
- whether they communicate clearly,
- how they delegate and make decisions,
- whether they build trust,
- how their leadership style affects collaboration.
However, it cannot independently determine whether the executive is genuinely increasing the company’s value, delivering strategic priorities or managing the demands of the role effectively.
At C-level, the results are also influenced by the organisational context. Leaders implementing restructuring or a demanding transformation may receive lower ratings because their decisions encounter resistance. Conversely, a popular executive may receive excellent feedback despite postponing difficult decisions.
Anonymity is not an automatic guarantee of objectivity either. Within a small board, respondents can often be identified, while personal relationships, concerns or conflicts over responsibilities may influence the assessment.
Three Questions That Reveal a Leader’s Actual Impact
In addition to feedback from others, we recommend examining the following:
- Does the leader remove obstacles or create new ones?
- Can they make critical decisions on time, even when those decisions are difficult and unpopular?
- Is the company and its team becoming more capable of delivering agreed results under their leadership?
However, even these questions cannot be properly evaluated without understanding the specific situation, the executive’s mandate and the company’s starting position.
How to Evaluate a C-Level Executive During Their First 100 Days
At FENIX SEARCH, we recommend combining several sources of information.
Clear Expectations from Day One
Before the executive joins the company, it should be clearly defined what they are expected to achieve during their first 100 days and over a period of 6 to 12 months. Expectations should cover not only financial indicators, but also people, processes and strategic priorities.
Structured Interviews
Interviews with the owner, board members, direct reports and other key stakeholders help reveal specific situations and the reasons behind their assessments. A numerical rating alone cannot provide this context.
Results and Observable Changes
In addition to financial performance, we recommend monitoring:
- the speed and quality of decision-making,
- delivery against agreed priorities,
- the removal of critical obstacles,
- team stability and performance,
- cross-functional collaboration,
- the ability to assume responsibility.
Psychometric Assessment and Executive Assessment
Psychometric assessment, an in-depth behavioural interview or an individual assessment can help to reveal a leader’s decision-making approach, management style, responses to pressure and potential development risks.
However, the results of these methods must always be interpreted in the context of the specific role, the company’s situation and the expected outcomes.
The Outcome Should Not Be a Score, but an Informed Conclusion
360° feedback can be a valuable development tool. However, it should not be the sole basis for assessing the success of a senior executive.
A reliable picture emerges only by combining the perceptions of others, specific behaviour, achieved results, the context of the role and clearly defined expectations.
At FENIX SEARCH, we combine Executive Search with in-depth behavioural assessment, psychometric diagnostics and individual assessment. We help our clients evaluate executives not only on the basis of their professional history, but also according to their potential, actual impact and ability to succeed within a specific corporate environment.
Do you need to establish an evaluation framework for a new member of your leadership team or assess a candidate’s managerial potential? Arrange a consultation with us.
Professional Sources
- Smither, J. W., London, M. & Reilly, R. R.: Does Performance Improve Following Multisource Feedback?, Personnel Psychology.
- Buckingham, M. & Goodall, A.: The Feedback Fallacy, Harvard Business Review.
- Center for Creative Leadership: research and methodological resources on 360° feedback and leadership development.