How Feedback Circles Can Unlock True Potential

Rethinking traditional performance management and adopting methods like feedback circles can transform feedback processes, turning them into powerful tools for growth and improvement

CREDIT: This is an edited version of an article that originally appeared on The HR Director

When done effectively, performance management can unlock significant benefits for both employees and organisations. Yet, many can recall past experiences where appraisals, reviews, or feedback sessions left them feeling anxious or disheartened.

With the rise of hybrid work models, modern workplaces are becoming more people centred. In-office time is now focused on collaboration and building relationships, prompting the need to rethink traditional performance management approaches.

What Does Performance Management Look Like?

Disagreements often arise between managers and employees regarding the frequency of performance management discussions. This mismatch might stem from differing interpretations of what qualifies as a performance-related conversation. While managers may be having frequent discussions with their team members, it’s crucial to assess whether these interactions are truly impactful. Are they helping employees improve? Are managers addressing core issues and establishing clear, achievable expectations?

Best Practice in Performance Management

The most effective performance management approach involves three essential steps: setting meaningful and relevant goals, providing access to coaching and training and delivering timely, constructive feedback. Allocating budget and time for coaching and training is crucial, especially when employees need to improve in specific areas to advance. However, it is often the third step that is overlooked. Creating a supportive environment where feedback is given and received regularly, and done so fairly and constructively, is vital for success.

The Role of Feedback Circles

Feedback is most impactful when provided with context, which is why real-time feedback is so effective. Organisations should establish a system where employees can request timely feedback from trusted colleagues, regardless of their role or level. This method, called a ‘feedback circle,’ encourages regular, meaningful exchanges of feedback among peers, promoting a culture of ongoing improvement.

Crucially, in this scenario, the employee controls the feedback process, which greatly enhances its effectiveness. By proactively seeking feedback from respected and valued colleagues, employees are more likely to accept and act on it. This approach tends to be far more impactful than formal appraisals or anonymous feedback.

Improving the Approach

Implementing long-term changes to a performance management approach is challenging. Managers must embed a culture of continuous feedback by making the process easy and accessible for everyone and by demonstrating its value. Although this transformation can be time-consuming, it is essential for a genuine evolution in performance management. By encouraging feedback requests and responses from all directions—not just from managers—organisations can foster a supportive environment where feedback is seen as a tool for development rather than criticism.