Before engaging in a feedback process like 360 degree feedback, it is important to know whether your organization is ready to engage in this kind of activity. Do you have a feedback culture? Are you prepared to foster one?
Maybe you've been looking and asking around. Maybe you've heard your competitors use feedback tools to improve performance and development. Yet, if you're thinking of engaging in a feedback process like 360 degree feedback just because your competitors use it, think twice. Organizations may choose to do a 360 degree feedback just because their competitors do. Or maybe to give the impression of openness and participation to employees, clients or recruits when, in fact, this is not a part of the organization's culture. Regardless, this amounts to using a tool or procedure for political purposes and is ultimately counter-productive.
If, on the other hand, your organization has a growing commitment to openness and feedback, then perhaps it's time. Just be sure you're going in for the right reasons.